Reversal expected for MGS-US Treasuries spread


In February, net foreign outflows totalled RM1.7bil in bonds and RM2.2bil in equities.

PETALING JAYA: The persisting negative spread between Malaysian Government Securities (MGS) and US Treasuries may reverse if the world’s largest economy’s growth expectations begin to moderate.

At the moment, however, MARC Ratings Bhd said the negative spread continues to favour US assets. This has resulted in continued capital outflows from Malaysia, amid global uncertainties.

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