Sunday, April 22, 2007

Malaysian Government Bonds May Drop; Central Bank to Keep Rates on Hold

(Bloomberg) -- Malaysia's government bonds may fall on speculation yields near the lowest in 17 months will deter investors as the central bank refrains from cutting interest rates. The ringgit was little changed.

Yields on three-year notes have dropped more than a percentage point since June to below the nation's benchmark borrowing rate. Bank Negara Malaysia will keep its overnight lending rate at 3.5 percent for an eighth straight time when policy makers meet on April 27, according to all 17 economists in a Bloomberg News survey.


Read more at Bloomberg Bonds News

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