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Monthly Fixed Income Report: October 2025
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MONTHLY FIXED INCOME REPORT: OCTOBER 2025
Ringgit Bond and Sukuk outstanding at RM2.229 trillion in October 2025
In October 2025, the Malaysian ringgit bond and sukuk market experienced a slight contraction of 0.41% month-on-month (MoM), bringing the total outstanding volume to RM2.229 trillion. Despite this short-term decline, the market's structural composition remained stable, with government issuance leading at 57.74% followed by corporates with 24.62% and quasi government at 17.63% in October 2025.
More significantly, the market has demonstrated robust resilience on a year-to-date (YTD) basis, expanding by RM129 billion which shows a strong 6.19% growth since December 2024. This sustained performance underscores solid investor confidence in Malaysia's fixed-income landscape.
The Malaysian bond and sukuk market contracted significantly in October 2025, with total monthly issuance falling 41.76% month-on-month (MoM) to RM23.74 billion. This overall decline was primarily driven by a sharp downturn in corporate fundraising, which plummeted 49.6% MoM to RM18.93 billion. A particularly dramatic drop in the not-rated corporate category was a key contributor to this segment's weak performance.
Partially offsetting the corporate slump, Government of Malaysia (GoM) issuances rose to RM4.50 billion. However, this increase was more than negated by a marked 75.0% reduction in issuance activity from Bank Negara Malaysia (BNM), which fell to RM0.30 billion. The combined effect of the steep corporate decline and the central bank's pullback defined the market's challenging period.
The Malaysian fixed-income market in October 2025 experienced a broad upward shift in yields compare to previous month. On the sovereign front, yields for Malaysian Government Securities (MGS) rose, with the 3-year tenor increasing 2 bps to 3.13% and the 10-year climbing 4 bps to 3.49%. However, Government Investment Issues (GII) shows mix trend, where the 3-year yield declined by 1 bps to 3.14% and the 10-year yield increased by 4 bps to 3.52%.
The upward momentum was more pronounced in the corporate debt segment. Yields on AAA-rated 3-year bonds surged to 3.52%, while the 10-year corporate yields registered a substantial increase, settling at 3.78% which shows both segments inclined by 4 bps. This steeper rise in corporate yields indicates a more significant repricing of risk and return expectations in the private sector compared to government debt.
END OF REPORT
4th November 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)
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