- The premium that 10-year Malaysian bonds command over equivalent Japanese notes has shrunk to around 115 basis points, well below the five-year average of 278 basis points as borrowing costs jumped in Japan.
- The premium is down about 70% from a 2022 peak, according to Bloomberg data.
- Malaysia’s struggling bond market faces growing risk of an outflow of Japanese capital as its yield premium shrinks.
Quotes
“The premium that 10-year Malaysian bonds command over equivalent Japanese notes has shrunk to around 115 basis points, well below the five-year average of 278 basis points as borrowing costs jumped in Japan, data compiled by Bloomberg show.”
“Malaysia’s struggling bond market may see an outflow of Japanese capital as its yield premium shrinks.”