May 17, 2017 / 9:32 AM / 4 months ago

Asia Graphics-Foreign investors turn net buyers of Malaysian bonds in April

May 17 (Reuters) - Foreign investors turned net buyers of Malaysian bonds in April, after a sale of over $60 billion in the last seven months.

The purchase of Malaysian bonds by foreigners, which was around $1.6 billion in April, got bolstered by a central bank announcement, that allowed non-bank entities to have a net forward position of up to 100 percent of their underlying assets and manage an additional 25 percent of foreign exchange exposure, from May 2.

Foreign sales of Malaysian bonds accelerated since November last year, after the central bank had asked foreign banks to stop trading ringgit non-deliverable forwards (NDFs), offshore contracts they use to hedge their exposure to the currency.

Indian, Indonesian and South Korean bond markets also received foreign inflows of $3.2 billion, $1.7 billion and $1.2 billion respectively.

On the other hand, foreign investors net sold Thai bonds in April. For graphic : tmsnrt.rs/29uYjbz

reut.rs/2qQ3V8o (Reporting By Gaurav Dogra & Patturaja Murugaboopathy; Editing by Sherry Jacob-Phillips)

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