HALISTER1: USD/MYR Spot, NDF Spread Widest in Over a Decade; Yields Surge

USD/MYR Spot, NDF Spread Widest in Over a Decade; Yields Surge

(Bloomberg) -- Spread between spot USD/MYR and 1-month non-deliverable forward widens to around 29 big figures, widest since at least 2005, up from 2 points a week ago and 4 points on Wednesday, the day of U.S. election results.
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  • Ringgit is vulnerable as Malaysia has high foreign ownership of local govt bonds and oil prices continued to slide, Scotiabank Asia FX strategist Qi Gao says
  • There’s risk of bond outflows from some Asian countries which may also weigh on currencies, Tim Condon, ING Bank head of Asia research says
  • Yield on 3.9% govt bond due Nov. 2026 jump 10bps to 3.91%, according to Bursa Malaysia prices
  • Onshore USD/MYR up 0.1% to 4.2755 at 9:07am local time
  • 1-month USD/MYR NDF up 4.4% to 4.5637 at 10:14am local
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Qi Gao (Bank of Nova Scotia Asia Ltd/Singapore)
Timothy Condon (ING Groep NV)

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