In the onshore bond market, Malaysian Government Securities (MGS) closed modestly firmer this week. Bank Negara held its policy interest rate unchanged, as expected, which provided modest support for local bonds.

       Meanwhile, additional support was provided by firm movement in the US government bond space as US Treasury (UST) yields fell by about five basis points (bps) week-on-week (w-o-w). For local bonds, the benchmark three-year MGS fell three bps w-o-w to 3.41% while the 10-year MGS is down two bps to 3.81%.