Active trading in govt bond market.

ON THE economic front, the inflation outlook remains benign, reinforcing our view that Bank Negara Malaysia is very likely to keep its Overnight Policy Rate unchanged at 2.00 per cent, at least until the first half of 2010. Headline inflation as measured by the Consumer Price Index (CPI) for August fell 2.4 per cent year-on-year for the third straight month as a result of the statistical base effect from the petrol increase and commodities rally last year. The CPI for the first eight months of this year, however, was still positive, increasing a 1.3 per cent year-on-year.

On the Malaysian Government Securities/Government Investment Issues market, the government sold RM4 …