KUALA LUMPUR, April 22 (Bernama) -- Bursa Malaysia ended lower on selling activities in the financial services and industrial products and services sectors’ heavyweights, amid tensions between US President Donald Trump and Federal Reserve chair Jerome Powell. The tensions, coupled with global uncertainty, have sparked investors’ concern, prompting them to remain cautious. CIMB gave up 11 sen to RM6.75, Hong Leong Bank slid 44 sen to RM19.54, and Press Metal Aluminium erased 10 sen to RM4.70. These counters dragged the composite index down by a combined 5.04 points. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.22 points or 0.88 per cent to 1,486.25 from Monday’s close of 1,499.47. The benchmark index opened 7.03 points lower at 1,492.44 and moved between 1,482.70 and 1,492.44 during the early session.
As Trump’s sweeping tariffs officially kicked in at midnight, the bond market reacted sharply:
10-Year Yield surged to 4.516%, before settling around 4.35% (+4.5 bps)
30-Year Yield rose to 4.83% (+5.4 bps)
What’s Happening?
Foreign demand jitters: Fears that foreign buyers, especially China, might pull back from U.S. Treasurys due to the trade war.
Hedge fund selloff: Analysts point to hedge funds unwinding “basis trades” — a leveraged strategy reliant on price stability in Treasurys.
Inflation impact: Tariffs are inflationary, which erodes bond values and raises yield expectations.
Upcoming tests:
🗓️ $39B 10-Year Auction – Wednesday
🗓️ $22B 30-Year Auction – Thursday
Jim Bianco:
“Something has broken tonight in the bond market. We are seeing a disorderly liquidation.”
China has called for dialogue but has made no concessions. Investors are now watching closely for signs of continued yield volatility, potential foreign selling, and Fed policy response.
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