PETALING JAYA: More overnight policy rate (OPR) cuts on the horizon and the move to allow banks to use Malaysian government securities (MGS) and government investment issues (GII) to meet the statutory reserve requirement (SRR) ratio will help spur bond demand this year.
Economists and bond analysts also agree that Bank Negara may step up its buying of government bonds, if the need arises. This bodes well for the bond market amid economic uncertainties as a result of the Covid-19 pandemic.
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