PETALING JAYA: Foreign buying of Malaysian bonds is set to gain momentum over the next few months and going into next year with the recent interest rate cut by the US Federal Reserve (Fed) and in anticipation of more cuts, going forward.
Economists and bond experts said the rate cuts would help attract foreign funds to invest in the ringgit bond market due to the narrowed yield differentials spread between the US Treasuries (UST) and Malaysian Government Securities (MGS), making the local ringgit bond market more attractive to foreign investors, among other factors.
