MALAYSIAN bonds are starting to show some concern about the nation’s rising fiscal deficit. It may be time for the central bank to respond.
The nation’s 10-year yield briefly climbed above 3% this week, from as low as 2.79% in May, after the authorities pledged to pump in another 35 billion ringgit ($8.2 billion) to counter the impact of the coronavirus.
That’s on the top of the 260 billion ringgit announced earlier. The government is now forecasting the fiscal deficit to widen to 5.8% to 6% of gross domestic product, the most in a decade.