according to this 16 Oct article........
"Most of the foreign bond funds have performed decently over the quarter against an easing monetary backdrop, and local funds have benefited as well.
As waves of easing swept across central banks residing across the globe, market participants have piled their monies into the Malaysian Government Securities (MGS) segment to secure yields.
Subsequently, the chase for yields has benefited local bond funds that have high exposure to the MGS segment.
The rally momentum found a stop at the end of 3Q 2019.
The US Fed’s monetary policy statement in September has steered market participants to readjust their interest rate expectation upwards as Fed members back-pedalled on further easing amid better-than-expected data coming from US macroeconomic front.
The recalibration of expectations caused a pullback in global bond prices, including the MGS segment.
Going forward, however, they are cautious against the expectations of easier monetary policies.
As such, the expected returns from fixed income could be fairly limited as we see little room for positive surprises going forward.
While bond returns may not be as exciting, bond prices are likely to remain supported as central banks may find lesser reason to tighten policies against backdrop of slowing global economy.
more.....
https://www.fundsupermart.com.my/fsmone/art...de-over-3Q-2019