Foreign ownership of Malaysian government bonds dropped in September for the first time in 12 months, with the outflows likely to have been triggered largely by debt maturities.
Overseas holdings decreased 0.4 percent to 213 billion ringgit ($51.4 billion), after climbing to a record in August, according to central bank data released in Kuala Lumpur Monday. Sovereign notes worth 19.7 billion ringgit matured last month, according to Maybank Investment Bank Bhd.
Malaysian government bonds have rallied over the past year, benefiting from a global yield hunt in anenvironment where almost $12 trillion of investment-grade debt offers sub-zero yields. The yield on Malaysia’s benchmark five-year notes has retreated 42 basis points in the past 12 months and reached the lowest level since May 2013 last month.
