Convera Singapore anticipates a potential easing of foreign outflows from Malaysia’s domestic bond market, following renewed expectations of United States (US) Federal Reserve rate cuts. In July, global funds withdrew USD 1.2 billion from Malaysian sovereign debt, the highest outflow since October, amid a strengthening US dollar. However, weaker-than-expected US nonfarm payroll data has led swap markets to price in at least two rate cuts in 2025, improving sentiment toward emerging-market assets. Malaysian bonds may benefit from this shift, supported by moderating domestic inflation, with June’s price increase marking the slowest since February 2021. Convera’s FX and macro strategist noted that outflow pressures may have peaked, while the bond market outlook for the remainder of the year will depend on emerging market risk appetite, US monetary policy trajectory, and domestic policy clarity. (ICE KUALA LUMPUR)

Fonte notizia: 12 agosto 2025, Kuala Lumpur