Foreign investors pulled RM5.6 billion out of Malaysia's bond market in July — a sharp reversal from the RM4.9 billion they put in just a month earlier. The selling was concentrated in longer-dated government securities, driven largely by surging US Treasury yields, even as corporate bonds kept attracting foreign money for a fifth straight month. It's a useful reminder of how tightly Malaysian yields and the ringgit are tethered to what happens in Washington. We speak to Woon Khai Jhek, Senior Economist and Vice President of Economic and Sovereign Research at RAM Rating Services, on whether the outflows continue.

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