MARKET TALK: Malaysian Govt Bonds Mostly Up; S/T Notes In Focus

Most Malaysian government bonds are higher though volumes remain thin ahead of an auction due Thursday; Malaysia's central bank plans to sell September 2019 Government Investment Issues worth MYR4.5 billion. "While many players are staying on the sidelines, the short-term Bank Negara Malaysia bills and notes are in focus," says a local trader. "Investors are treading cautiously given the weaker ringgit against the U.S. dollar at the moment," he adds. The yield on the September 2016 MGS is flat at 3.28% while the September 2018 MGS yield is down 1 bp at 3.55% and August 2022 MGS yield is down 3 bps at 3.66%.