The latest 5-year Government Investment Issue (GII) reopening auction has shown impressive results, reflecting robust investor interest despite a smaller-than-anticipated issuance size. The auction, achieved a bid-to-cover (BTC) ratio of 3.683x, indicating strong demand. The issuance size was set at MYR4 billion, lower than market expectations, and notably, no private placement was involved.
Total bids amounted to MYR14.7 billion, marking the highest bid volume since April and the third largest bid volume this year. This heightened interest is attributed to the new benchmark bond’s natural appeal, further boosted by an overnight rally in US Treasury securities (UST). The exceptional demand underscores the attractiveness of 5-7 year GII bonds, which are seen as a sweet spot for carry, appealing to both conventional and Islamic investors.
In the when-issued (WI) market, price…
