MARKET TALK: Malaysian Govt Bonds Mixed; Long-End Papers Fall

Malaysian government bonds are mixed with some selling pressure on longer-dated bonds due to profit-taking after recent gains. A local trader says, "there is some selling because of lower risk appetite on Greece concerns. We are likely to continue to look towards Europe for near term cues amid lack of leads in the local markets." He adds, the GDP growth data out late Wednesday wasn't really a surprise; "what would be more important is how Malaysia achieves its 2012 growth target of 5%-6%." Malaysia Wednesday said its economy expanded 5.1% in 2011, within the government's 5.0%-5.5% forecast range but slower than the 7.2% growth in 2010. The yield on the August 2014 MGS is flat at 2.92%, the September 2016 MGS yield is also flat at 3.16%, while the yield on September 2018 MGS is up 1 bp at 3.33% and the August 2022 MGS yield is also up 1 bp at 3.43%.