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Monthly Fixed Income Report: July 2026
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MONTHLY FIXED INCOME REPORT: July 2026
Ringgit Bond and Sukuk Market Stood at RM2.362 trillion Outstanding
The Malaysian ringgit bond and sukuk market achieved a historic milestone in July 2026, with total outstanding issuances reaching an all-time high of RM2.362 trillion. This represented a month-on-month increase of RM8 billion, or 0.34%, from RM2.354 trillion recorded in June 2026, reflecting steady incremental growth in the domestic fixed income landscape. On a year-to-date basis, the market has expanded by 4.70% from RM2.256 trillion at the end of 2025, underscoring the sustained upward trajectory and deepening investor participation in Malaysia's debt capital markets throughout the first seven months of the year.
From a structural composition standpoint, government issuances remained the dominant pillar of the market, accounting for a substantial 57.49% of total outstanding, thereby reinforcing the sovereign's pivotal role in anchoring the yield curve and providing a reliable benchmark for pricing across tenors. The corporate segment contributed meaningful depth with a 26.29% share, while quasi-government entities comprised the remaining 16.22%, together forming a well-balanced and diversified issuance base.
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The Malaysian bond and sukuk market registered a substantial uptick in primary issuance activity during July 2026, with total monthly issuances surging by 67.04% month-on-month to RM28.28 billion, up from RM16.93 billion in June 2026, signalling renewed investor confidence and favourable funding conditions. This remarkable growth was predominantly fuelled by a sharp escalation in AAA-rated issuances, which jumped to RM10.21 billion from RM3.04 billion in the prior month, reflecting robust appetite for high-quality credit instruments. Additionally, the Government Guaranteed segment, which saw no issuances in June, rebounded strongly with RM5.93 billion of new paper entering the market, while Government of Malaysia also intensified its borrowing activities, raising RM3.00 billion in July compared to just RM0.50 billion in the previous month.
Malaysian Government Securities (MGS) experienced a broad-based yield increase across all maturities in July 2026, 3-year MGS yield rose by 5 basis points (bps) to 3.30%, while the 5-year and 7-year yields recorded more substantial increases of 12 bps each, settling at 3.49% and 3.65%, respectively. The benchmark 10-year MGS yield advanced by 10 bps to 3.70%, up from 3.60% in June, indicating a notable repricing along the longer end of the yield curve.
A parallel upward movement was observed in the Government Investment Issue (GII) segment, with yields climbing across all tenors. The 3-year GII yield increased by 11 bps to 3.35%, while the 5-year GII yield rose by 13 bps to 3.48%, marking the most significant gains in this category. Meanwhile, the 7-year and 10-year GII yields edged higher by 10 bps and 9 bps, reaching 3.63% and 3.70%, respectively.
In the corporate debt segment, AAA-rated bonds and sukuk moved in tandem with identical yield adjustments across comparable maturities. The 3-year AAA yield rose by 3 bps to 3.68%, while the 5-year yield inched up by 1 bp to 3.77%. The 7-year and 10-year yields both climbed by 4 bps, reaching 3.87% and 3.99%, respectively.
END OF REPORT
3rd August 2026
The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, Bond and Sukuk Information Platform Sdn Bhd (“the Company”) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
(201701039928) (1254101-K)
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