MGS Yields Seen Stable, Rangebound Ahead Of Key Data Next Week - Kenanga IB

KUALA LUMPUR, Sept 25 (Bernama) -- Kenanga Investment Bank Bhd (Kenanga IB) expects Malaysian Government Securities (MGS) yields to remain broadly stable and range-bound ahead of key economic data releases next week, while easing geopolitical tensions could support market sentiment.

In a note today, the investment bank said market focus would shift to producer price index (PPI) and purchasing managers’ index (PMI) data, as well as further policy signals ahead of Budget 2027.

“Foreign demand remained robust, with RM2.7 billion in net inflows into Malaysian bonds last week, while foreign investors also returned to Bursa Malaysia with RM127 million in net equity inflows, ending a six-week selling streak.

“Externally, markets will watch US labour and personal consumption expenditures (PCE) inflation data. The extension of the US-China trade truce and ongoing US-Iran negotiations have supported global risk sentiment,” it said.

Meanwhile, Kenanga IB expects US Treasury yields to remain biased higher next week ahead of the core PCE price index and key US data releases.

These include US job openings and labour turnover survey, Automatic Data Processing (ADP) employment, non-farm payrolls (NFP), the unemployment rate, gross domestic product (GDP) growth and Institute for Supply Management (ISM) manufacturing PMI.

“NFP is expected to rise by around 100,000, while a consensus 0.3 per cent month-on-month core PCE print would reinforce the higher-for-longer narrative.

“Progress in US-Iran talks to reopen the Strait of Hormuz could ease energy supply concerns and cap further upside in yields,” it added.

-- BERNAMA