Ringgit bonds facing bearish demand

RAM Rating Services Bhd senior economist and head of economic research Woon Khai Jhek

PETALING JAYA: The demand for Malaysian bonds by foreign investors is likely to take a hit in the near term as the United States Federal Reserve (Fed) signals higher interest rates for a longer duration.

Fixed-income analysts said although foreign investor holding of ringgit bonds may be impacted due to higher interest rates in the United States and other developed economies, nonetheless the local bond market may to an extent hold up as it is well supported by local institutional investors.