Kenanga: MGS yields to stay elevated into September FOMC, 10-year forecast raised to 3.88%
Malaysian government bond yields are expected to keep an upward bias in the near term, with Kenanga Research citing higher global rates, oil-price pressure and rising term premiums ahead of Budget 2027. The 10-year MGS yield rose 21.5 basis points to 4.134% last week, and Kenanga raised its end-2026 forecast to 3.88% from 3.63%. Yields could retrace if the US Federal Reserve holds rates steady at its September meeting.