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Monthly Fixed Income Report: May 2026
Jun 04, 2026
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MONTHLY FIXED INCOME REPORT: MAY 2026
Ringgit Bond and Sukuk Market Stood at RM2.335 Trillion Outstanding
The Malaysian ringgit bond and sukuk market reached an all-time high of RM2.335 trillion in total outstanding issuances in May 2026. This marked a month-on-month (MoM) increase of RM25 billion, or 1.08%, from RM2.310 trillion in April 2026. On a year-to-date (YTD) basis, the market has grown 3.50% from RM2.256 trillion at end-2025, reflecting sustained growth momentum.
From a structural perspective, government issuances remained the market's cornerstone, accounting for 57.62% of total outstanding. The corporate segment added further depth to the market with a 26.02% share, while quasi-government entities contributed the remaining 16.36%. Together, these three segments form a well-diversified base that reflects sustained investor confidence across Malaysia's fixed income landscape, underscoring the market's capacity to maintain stability and attract consistent capital.
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May 2026 saw a modest uptick in bond and sukuk issuance activity, with total monthly issuances rising 2.94% month-on-month to RM37.89 billion from RM36.81 billion in April 2026. A key driver of this increase was the strong recovery in NR (not-rated) issuances, which surged to RM13.93 billion from RM3.98 billion in the prior month. AAA-rated issuances also gained momentum, climbing to RM8.06 billion, while AA2/AA/P1/M-1 rated issuances remained a steady contributor at RM7.95 billion. Meanwhile, Government of Malaysia recorded no new issuances in May, compared to RM16.00 billion in April, and government guaranteed issuances eased marginally to RM1.88 billion from RM2.00 billion previously.
Malaysian Government Securities (MGS) yields edged higher in May 2026 across most maturities. The 3-year MGS yield rose 2 bps to 3.23% from 3.21% in April 2026, while the 5-year and 7-year yields increased by 5 bps and 7 bps to 3.40% and 3.51% respectively. However, 10-year MGS yield eased marginally by 1 bp to 3.56% from 3.57% in the prior month.
A similar upward trend was observed in the Government Investment Issue (GII) segment. The 3-year GII yield climbed 6 bps to 3.23%, while the 7-year GII yield increased by 6 bps to 3.54%. The 5-year and 10-year GII yields increased by 2 bps and 1 bp to 3.33% and 3.60% respectively.
In the corporate segment, AAA-rated bond and sukuk yields moved in tandem, with identical figures across all maturities. The 3-year, 5-year and 10-year yields each rose 2 bps to 3.62%, 3.73% and 3.92% respectively, while the 7-year yield increased 3 bps to 3.82%.
END OF REPORT
4th June 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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