There was some interest to buy MYR ahead of USD 3.92 by locals but continues to be overshadowed by the unwinding of
foreign bond inventories, but this was more so prevalent when the UST 10 yield was above 3 %.
In Australia, for example, several
foreign banks have ceased their market - making in corporate
bond and derivatives markets in recent years and have drawn down their
inventories.7 In core markets, such as domestic sovereign
bonds, domestic dealers are likely to pick up at least part of the slack.