Malaysia Bonds Are Rallying But Oil Clouds Outlook
- Drop in ringgit hedging costs are enticing offshore investors
- Rout in crude may impact fiscal deficit, weighing on bonds
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Malaysia’s bonds have been the top performers in emerging Asia after the Philippines this month as traders bet on further policy easing, but plummeting oil prices may be about to draw a line under further gains.
The yield on the benchmark 10-year security has dropped more than 40 basis points in April as investors have piled into longer maturities after the yield curve climbed to the steepest in more than three years.