KUALA LUMPUR, Total trading for government bonds, such as Malaysian Government Securities (MGS) and Mudharabah Investment Interbank (MII) for the week ended May 10, rose to RM26.9 billion from RM19.4 billion in the preceding week.
In its weekly fund flow report, MIDF Amanah Investment Bank Bhd Research said the total trading value of 10 most actively traded issues increased to 45 per cent of the overall government bond trades in the week under review from 41 per cent in the previous week.
However, it said the domestic MGS yields edged lower, arguably in reaction to the external uncertainties in line with the movement of the United States Treasuries (UST).
UST rebounded with the price increases albeit at a lower yield last week, but nonetheless the 10 year-three year yield spread slightly increased to +24 basis points (bps) from +23 bps a week earlier.
We reckon the buying activities were boosted by the sudden heightening in the US-China trade spat, it said.
In contrast, it said the total trading value for corporate bonds (conventional and sukuk) decreased to RM1.74 billion during the week compared with RM2.57 billion the previous week.
Meanwhile, total foreign holdings of Malaysian government bonds rose to RM169.4 billion as at end-March from RM167 billion in February.
However, the total foreign holdings of corporate bonds decreased by RM7 million to RM13.5 billion in March.
In comparison to equities, the research house said the bonds market saw a total net inflow worth RM2.7 billion in March 2019, while the former saw a total net outflow worth RM1.4 billion.
For 2018, the net flows of both equities and bonds markets were in the red with total net outflows of RM11.7 billion and RM21.1 billion respectively, it added.
Source: BERNAMA (News Agency)