2012.05.24 10:05:56 MARKET TALK: Malaysian Govt Bonds Mixed; Europe News Eyed-Trader

0805 GMT [Dow Jones] Malaysian government bonds are mixed in subdued trade amid mild selling pressure due to lingering concerns over the European debt crisis; traders say selling will likely persist in the near term as investors trim their holdings to bid for an upcoming government bond auction. "The offering size is at the lower end of market expectations and it lacks the appeal of a 5-year or 10-year bond, but demand should be decent since it's a benchmark paper," says a local trader, who adds that the market will continue to focus on Europe for its next cues. Malaysia's central bank plans to auction MYR3.00 billion of September 2018 government securities May 30; the bond will be issued on May 31. The yield on October 2015 MGS is up 3 bps at 3.19% while October 2017 MGS yield is up 1 bp at 3.25%. September 2018 and August 2022 benchmark papers' yields are both down 1 bp at 3.39% and 3.52% respectively. (jason.ng@dowjones.com) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires May 24, 2012 04:05 ET (08:05 GMT)