Malaysia 10-year MGS yield at 3.87%: how high is that in its own history?
The 10-year Malaysian Government Securities yield ended August 2026 at 3.867%, the highest month-end since October 2024, yet only 107th of 236 month-ends since 2007. Ranking, yearly averages, real yield and the gap to the OPR.
Bond yields around the world are at multi-year highs, and Malaysian readers may wonder whether their own government bonds have followed. The short answer: the 10-year MGS yield has risen, but within Malaysia’s own history it is in the middle of the range, not near the top.
How high is the Malaysian 10-year yield now?
The 10-year Malaysian Government Securities (MGS) yield ended August 2026 at 3.867%, according to Bank Negara Malaysia’s Table 2.5, which records month-end market indicative yields.
10-year MGS yield at the end of August 2026 (BNM month-end). Highest month-end since October 2024
September is not yet in that table. Two other sources fill the gap, and each measures something slightly different.
| Source | What it measures | Value |
|---|---|---|
| BNM Table 2.5 | 10-year month-end, August 2026 | 3.867% |
| ADB AsianBondsOnline (data: Bloomberg) | 10-year average of September 2026 | 4.03% |
| ADB AsianBondsOnline (data: Bloomberg) | 10-year month-end, September 2026 | 4.048% |
| BNM benchmark close (MGS Jul-2035) | 15 September 2026 | 4.17% |
| BNM benchmark close (MGS Jul-2035) | 8 October 2026 | 3.96% |
The daily closing yields come from BNM’s Government Securities Yield page. The September peak was in mid-month; by early October the 10-year benchmark had eased back below 4%.
Where does 3.867% rank since 2007?
BNM publishes monthly values from January 2007, which gives 236 month-ends up to August 2026.
| Measure | Value |
|---|---|
| Rank of August 2026 | 107th of 236 |
| Share of month-ends that were lower | 54.7% |
| Last month-end that was higher | October 2024, 3.925% |
| Highest | June 2008, 4.858% |
| Lowest | July 2020, 2.554% |
| Change over one year | +48 bp |
| Change since end-2025 (3.506%) | +36 bp |
The rise in 2026 came mostly in the last two months: 3.506% at the end of 2025, 3.635% in March, 3.609% in June, 3.706% in July and 3.867% in August.
If the ADB September month-end of 4.048% is placed against BNM’s history, the last higher month-end was October 2023 (4.092%). That is a three-year high, not a multi-decade one.
Yearly averages: has it been higher before?
Yes, several times. These are averages of BNM month-end values.
Yearly averages: has it been higher before?
Average 10-year yield
Shared linear scale from zero. Selected entries from the table below. Its dates, units, definitions and limitations still apply.
| Year | Average 10-year yield |
|---|---|
| 2008 | 4.10% |
| 2010 | 3.98% |
| 2015 | 4.04% |
| 2018 | 4.08% |
| 2020 | 2.81% |
| 2022 | 4.08% |
| 2024 | 3.83% |
| 2025 | 3.56% |
| 2026 (January-August) | 3.62% |
The striking feature of Malaysia’s series is how narrow it is. Over almost 20 years the month-end yield has stayed between 2.55% and 4.86%, and most years averaged between 3.5% and 4.1%. The 2026 average so far is below 2008, 2015, 2018 and 2022.
What is left after inflation?
Subtracting consumer price inflation gives a rough real yield.
| Calculation | Value |
|---|---|
| August 2026 yield minus July 2026 CPI (1.78%) | +2.09 points |
| August 2026 yield minus August 2026 CPI (1.9%) | about +1.97 points |
| Highest same-month real yield since 2007 | +6.66 points, July 2009 |
| Lowest same-month real yield since 2007 | −3.74 points, August 2008 |
The July figure is from OpenDOSM; the August headline of 1.9% is from the DOSM August release. A real yield of around +2 points is positive and fairly high by recent standards, mainly because Malaysian inflation is low rather than because the nominal yield is unusual.
What does this mean for borrowers, savers and bondholders?
The Overnight Policy Rate was kept at 2.75% on 3 September 2026; the last change was a cut in July 2025. With the 10-year at 3.867%, the long end is 112 basis points above the policy rate.
| Who | What moves their rate |
|---|---|
| Floating-rate home or car loan | The Standardised Base Rate, linked only to the OPR since 1 August 2022 (Public Bank guide) |
| Fixed deposit | Bank pricing, which follows the OPR more closely than the 10-year |
| Long fixed-rate financing | Closer to longer-term yields |
| Holder of MGS or bond funds | Prices fall when yields rise, and rise when yields fall |
So a higher 10-year yield is not a direct hit to a typical floating-rate borrower, as long as the OPR stays put. It matters more for anyone holding long bonds, and for anyone planning a long-term goal who wants to know what a safe return looks like today.
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BNM's values are month-end indicative yields; one day's level can differ from the monthly average. The ADB figures (data: Bloomberg) are supplementary and use a different calculation. CPI months do not match the yield month in every row. BNM's table has only year-end values before 2007, so the ranking covers 2007 onwards only.
Questions & answers
Is 3.867% a record for the Malaysian 10-year yield?
No. On BNM's month-end series since January 2007 it ranks 107th of 236. The record is 4.858% in June 2008, and as recently as October 2024 the month-end was higher at 3.925%.
Why do some sites show about 4% for September?
BNM's monthly table runs to August 2026. ADB AsianBondsOnline, which uses Bloomberg data, shows a September average of 4.03% and a month-end of 4.048%. These are a different calculation from BNM's month-end figure, so this note keeps them separate.
Does a higher 10-year yield raise my home loan rate?
Not directly. Since 1 August 2022 new retail floating-rate loans in Malaysia reference the Standardised Base Rate, which is linked only to the OPR. The OPR has been 2.75% since July 2025. Fixed-rate financing and bond prices are where the 10-year yield matters more.
What is the real 10-year yield in Malaysia?
About +2.09 percentage points, from the August 2026 yield of 3.867% minus July CPI inflation of 1.78%. Using DOSM's August CPI of 1.9% it is about +1.97 points.
Source
- Bank Negara Malaysia - Monthly Highlights & Statistics, Table 2.5 Market Indicative Yield: MGS (month-end) ↗
- Bank Negara Malaysia - Government Securities Yield (daily benchmark closing yields) ↗
- ADB AsianBondsOnline (data: Bloomberg) - Local currency government bond yields ↗
- Bank Negara Malaysia - Monetary Policy Statement, 3 September 2026 ↗
- OpenDOSM - Consumer Price Index, headline ↗
- DOSM - Consumer Price Index, August 2026 ↗
- Public Bank - Consumer guide on the Standardised Base Rate ↗