2% only... It's indeed priced correctly between the current 1-year and 3-years MGS yield. https://www.investing.com/markets/malaysia



Anyway, is there a secondary market?



This post has been edited by TOS: Aug 18 2020, 12:08 PM

I see. Thanks. Checked out the FAQ sheet as well.

The non-tradable provision is very disturbing. What happens if interest rate rises above 2% 1-2 years later? If bonds can be traded, market can price in accordingly (by selling the bond in secondary market until yield goes up to market-clearing level), but with non-tradable provision, you are stuck with low rate. Can't even sell back to government before maturity. A 2% return for such an illiquid asset is not really enticing to me.