Rally in ringgit Islamic bonds to end
According to CIMB Group Holdings Bhd and RHB Capital Bhd, the rally in ringgit-denominated Islamic bonds that pushed yields to an eight-month low will stop after the central bank ruled out a cut in interest rates.
After the interview with Bank Negara Malaysia Governor Zeti Akhtar Aziz, yields may rise.The governor noted that the benchmark policy rate of 3 percent is supportive of economic growth ahead of a March 9 review.
Overseas funds reduced holdings of local-currency government Islamic bonds by 11 percent in January to RM490 million (US$163 million), the least in a year.
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