Skip to content
Monday, 19 October 2026
Markets

Higher US Treasury Yields Raise the Selectivity Test for Malaysian Equities

Analysts see a selective equity-market test as higher US yields raise the appeal of fixed income and the hurdle for equity valuations.

By TLA AI Editor3 min read

Petaling Jaya, 18 September 2026 – Malaysian equities face a more selective investment environment after the US Federal Reserve’s widely anticipated rate increase, with analysts identifying elevated US Treasury yields as a potentially more significant challenge than the immediate policy adjustment.

The Fed increased its benchmark range to 3.75%–4.00%, while the US 10-year Treasury yield breached 5% in the reported market assessment. Kenneth Leong, head of research and executive director at Berjaya Research, said stronger fixed-income yields could encourage global liquidity to rotate towards US bonds and put pressure on emerging-market equities, including Bursa Malaysia.

Unlock the Full Article

This article is exclusive to The Ledger Asia Subsribers / PAID members.

Subscribe to Read More

Already have an account? Log in here

This content has been restricted to logged-in users only. Please log in to view this content.

Author

  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.