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Malaysia Turning Point Weighed as Worst Asia Bonds Show Strength

  • Some bonds starting to look oversold, say PineBridge, Vanguard
  • Bond risk gauge poised for biggest monthly drop in four years
Updated on

Malaysia’s bonds are showing signs of stability, heating up the debate on when to pile back into Asia’s worst-performing debt.

Malaysia’s corporate dollar-denominated notes have returned 1.5 percent this month, paring their losses for the year to 1.7 percent, the biggest on a JPMorgan Chase & Co. index. The cost of insuring the nation’s sovereign debt has fallen the most in four years in October, while the ringgit has rallied 3.1 percent after a decline of 20 percent in the first nine months.