MARKET TALK: Malaysian Bonds Mostly Flat; Inflation Data Wed Eyed

Most Malaysian government bonds are unchanged ahead of the January inflation data and August 2017 sukuk auction details expected Wednesday. A local trader says, "market players are keenly awaiting the inflation numbers to see which way the central bank will go in March." He adds, in the near term we may see the yield curve flattening a bit more, with many offshore funds looking to buy into longer-dated bonds in the country; "but sentiment is likely to be cautious as well, with headlines from Europe continuing to dictate the direction." The yields on the August 2014 MGS, September 2016 MGS and August 2022 MGS are all flat at 2.91%, 3.15% and 3.43% respectively, while the September 2018 MGS yield is up 1 bp at 3.34%