KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
The Singapore Exchange is exploring the launch of government bond futures linked to key Asian markets, in a move that could significantly deepen regional fixed-income trading and risk management.
What’s Being Proposed
According to sources, SGX has held discussions with treasury officials from global banks on introducing bond futures tied to Asian sovereign markets, including:
India
Indonesia
Malaysia
Philippines
Thailand
These futures would allow investors to hedge interest-rate risk more efficiently by trading standardized contracts rather than underlying bonds.
Key Product Features (Proposed)
Tenors: 3-year, 5-year and 10-year maturities
Settlement: US dollar–denominated
Pricing: Based on the average yield of a basket of up to three sovereign bonds per country
Launch timeline: 1H 2026, potentially as early as 1Q 2026
Details remain preliminary and subject to change.
Why This Matters
Rising Global Interest in Asian Bonds
Indian government bonds have been added to major global indices over the past 18 months
Malaysian bonds were among the best-performing in emerging Asia last year, attracting strong foreign inflows
For India specifically, overseas investors have poured US$21 billion into sovereign bonds since their inclusion in JPMorgan Chase & Co’s flagship bond index in June 2024.
India in Focus
For Indian bond futures, SGX is expected to reference bonds under the Fully Accessible Route (FAR) framework, which:
Allows unrestricted foreign ownership
Makes bonds eligible for global index inclusion
Improves liquidity and transparency for international investors
Investor Takeaway
If launched, these futures could:
Enhance hedging capabilities for global investors with Asian bond exposure
Boost liquidity and price discovery in regional debt markets
Strengthen SGX’s position as a regional derivatives and fixed-income hub
For investors, this signals growing institutional confidence in Asian sovereign debt and a push toward more sophisticated risk-management tools in the region.
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