Malaysian Bonds Plunge as Outflow Concerns Mount; Ringgit Drops
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Malaysia’s 10-year government bonds fell, driving the yield to a two-year high, on concern global investors will repatriate funds after $2.9 billion of sovereign debt matures tomorrow. The ringgit declined.
Capital outflows could cause the ringgit to underperform, Dariusz Kowalczyk, a Credit Agricole CIB strategist in Hong Kong, wrote in a research report today, as 10-year notes fell for a fifth day, the longest stretch in a month. Overseas investors held 33 percent of Malaysian government debt in May, the highest proportion among Southeast Asia’s biggest economies, according to central bank and finance ministry data.