Monthly Fixed Income Report: August 2026

Sep 02, 2026

4 min read

Featured Posts

Social Bonds Illustrative Use-Of-Proceeds Case Studies Coronavirus

Jul 06, 2020

2 min read

Sustainable Banking Network (SBN) Creating Green Bond Markets

Jul 06, 2020

2 min read

Why is Inflation Making a Big Comeback After Being Absent for Decades in the U.S.?

Mar 24, 2022

7 min read

SC issues Corporate Governance Strategic Priorities 2021-2023

Mar 29, 2022

3 min read

BIX MALAYSIA

MONTHLY FIXED INCOME REPORT: AUGUST 2026

Ringgit Bond and Sukuk Market Stood at RM2.388 trillion Outstanding

In August 2026, Malaysia’s ringgit bond and sukuk market registered a landmark achievement, with total outstanding issuances surging to an all-time high of RM2.388 trillion. This marks a month-on-month increase of RM26 billion, or 1.10%, relative to the RM2.362 trillion recorded in July 2026, underscoring a trajectory of steady, incremental expansion within the domestic fixed-income landscape. Furthermore, on a year-to-date basis, the market has grown by 5.85% from RM2.256 trillion at the close of 2025, reflecting robust and sustained momentum over the first eight months of the year.
From a structural perspective, government-related issuances continue to serve as the market’s foundational anchor, commanding a substantial 57.68% share of total outstanding paper. This dominant position underscores the sovereign’s critical function in shaping the yield curve and delivering reliable pricing benchmarks across all maturities. Complementing this public-sector pillar, corporate issuances contribute meaningful breadth with a 26.38% proportion, while quasi-government entities account for the remaining 15.94%.
.

July26 - Outstanding Amount by Class in April 26 vs May 26

In August 2026, primary issuance activity within the Malaysian bond and sukuk market experienced a notable moderation, with total monthly issuances declining by 19.38% month-on-month to RM22.80 billion, down from RM28.28 billion recorded in July 2026. This contraction was predominantly driven by a sharp reduction in AAA-rated issuances, which plummeted to RM2.28 billion from RM10.22 billion in the preceding month, alongside a significant pullback in the Government Guaranteed segment, which fell from RM5.93 billion to RM1.05 billion. Compounding this downward trend, the Government of Malaysia did not undertake any new issuances in August, a stark contrast to the RM3.00 billion raised in July, thereby accentuating the overall slowdown in supply-side activity and reflecting a temporary pause in sovereign and high-grade corporate funding initiatives during the period.

In August 2026, the Malaysian Government Securities (MGS) segment registered a broad-based upward repricing across all tenors, signaling a discernible shift in sovereign yield dynamics. The 3-year MGS yield increased by 6 basis points (bps) to 3.36%, while the 5-year and 7-year yields recorded more pronounced gains of 12 bps and 15 bps, closing at 3.61% and 3.80%, respectively. At the longer end of the curve, the benchmark 10-year MGS yield advanced by 17 bps to settle at 3.87%, up from 3.70% in July 2026.

A parallel upward trajectory was evident in the Government Investment Issue (GII) segment, where yields also climbed uniformly across all maturities. The 3-year GII yield edged up by 3 bps to 3.38%, while the 5-year GII yield rose by a sharper 13 bps to 3.61%. Meanwhile, the 7-year and 10-year GII yields recorded increases of 18 bps and 17 bps, reaching 3.81% and 3.87%, respectively.

In the corporate debt space, AAA-rated bonds and sukuk exhibited a remarkably similar pattern of yield adjustments, moving in tandem with their sovereign counterparts across comparable maturities. The 3-year AAA yield rose by 4 bps to 3.72%, while the 5-year yield inched up by 11 bps to 3.88%. At the longer end, the 7-year and 10-year AAA yields climbed by 15 bps and 20 bps, respectively, to settle at 4.02% and 4.19%.

END OF REPORT
2nd September 2026

- This announcement is available at BIX Malaysia website (www.bixmalaysia.com) –

DISCLAIMER

The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation, or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs, and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile.

The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, Bond and Sukuk Information Platform Sdn Bhd (“the Company”) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

BIX ARTICLE

Monthly Fixed Income Report: August 2026

Featured Posts

YOU MAY ALSO LIKE

CIMB tests tokenised sukuk for faster settlement

As US public finances crumble, the private sector is thriving