KUALA LUMPUR: Foreign holdings of Malaysian bonds posted a strong inflow in October, signalling confidence in Malaysia's economic fundamentals.

In its October fixed income review, MBSB Research said the outstanding value moved higher by RM7.2 billion to RM325.5 billion.

"Foreign holdings saw a significant increase in the final week of October, reaching a record high.

"We estimate that the share of foreign holdings in total outstanding government debt edged higher to 21 per cent," it said.