BIX ARTICLE
Monthly Fixed Income Report: May 2025
Jun 03, 2025
|
4 min read
Featured Posts
SRI Sukuk: The Journey Towards Sustainable and Responsible Investment
Jul 23, 2020
|
5 min read
Securities Commission's Capital Market Masterplan 3 (CMP3)
Sep 21, 2021
|
2 min read
What If We Allowed Retail Investors to Directly Invest in Malaysia’s Government Bond?
Aug 24, 2021
|
8 min read
Islamic Bonds Come Under Microscope After Garuda Indonesia Default
Aug 19, 2021
|
8 min read
BIX MALAYSIA
MONTHLY FIXED INCOME REPORT: MAY 2025
Ringgit Bond and Sukuk Market Hits RM2.172 trillion in May 2025
The Malaysian ringgit bond and sukuk market continued its upward trajectory in May 2025, posting a 0.32% month-on-month (MoM) increase, with total outstanding climbing to RM2.172 trillion up from RM2.165 trillion in April. Government issuances led the market, commanding a dominant 58.42% share, while quasi-government and corporate segments contributed 16.27% and 25.30%, respectively.
On a year-to-date (YTD) basis, the market has expanded by RM72 billion, marking a solid 3.43% growth since December 2024 (RM2.10 trillion). This steady rise underscores resilient demand and sustained investor confidence in Malaysia’s fixed-income landscape in 2025.
The ringgit bond and sukuk market experienced a 10.89% MoM contraction in May 2025, with total issuance falling to RM22.17 billion from April's RM24.88 billion. However, this overall decline masked a striking divergence between soaring government activity and weakening corporate participation. Government issuances surged 61.54% to RM10.50 billion, while Bank Negara Malaysia more than doubled its issuances to RM0.70 billion (+133.33%), signalling strong public sector momentum.
The corporate segment told a different story, plunging 39.33% MoM to RM10.97 billion as Government Guaranteed bonds disappeared from May's issuance slate after April's RM5.55 billion showing. Despite this pullback, the market demonstrated clear preference for quality, with AA2/AA/P1/M-1 rated bonds emerging as May's standout segment at RM5.88 billion. This bifurcation suggests investors are becoming more selective, favouring sovereign-backed and high-grade credit instruments amid shifting market conditions.
The Malaysian fixed income market witnessed a broad-based yield retreat in May 2025, with sovereign and corporate instruments alike benefiting from favourable market conditions. Government securities led the charge, as 3-year MGS yields fell 10bps to 3.16% while 10-year MGS yields dropped 14bps to 3.52%. The downward trend was even more pronounced in Government Investment Issues (GII), where 3-year yields plummeted 15bps to 3.17% and 10-year yields declined 10bps to 3.52%.
The yield contraction extended to corporate debt, with AAA-rated 3-year bonds and sukuk easing 7bps to 3.59% and 10-year AAA yields falling 11bps to 3.75%. This parallel decline across all major fixed income segments reflects a market-wide shift toward yield-seeking behaviour, potentially driven by easing inflation expectations or increased demand for safe-haven assets.
END OF REPORT
3rd June 2025
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.
(201701039928) (1254101-K)
YOU MAY ALSO LIKE
ARTICLE
Jun 03, 2025
|
4 min read
ARTICLE
May 15, 2025
|
5 min read
ARTICLE
May 05, 2025
|
3 min read
ARTICLE
Apr 04, 2025
|
9 min read