Research: Myr Bonds more Vulnerable if Foreign Demand Continues to Decline

Quotes from Standard Chartered:

-While we are generally constructive on both MYR and THB bonds, we prefer THB bonds and recommend that investors switch out of 10Y MYR into 10Y THB bonds(foreign investors are mostly neutral/overweight MYR and underweight THB bonds). 

-Since 2008, 10Y MYR yields have traded around 30-40bps above 10Y THB yields. However, 10Y THB yields are now 20bps above 10Y MYR yields. In addition, we see MYR bonds as more vulnerable if foreign demand continues to decline.