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[Malaysian Stocks Close Lower, US Treasury Yields and Fed Tightening Expectations Dominate Sentiment] ⑴ Malaysian stock market indices closed lower after volatile trading, with market sentiment weighed down by rising US Treasury yields and concerns about potential further monetary tightening by the Federal Reserve. ⑵ Analysts pointed out that these factors continued to put pressure on market risk appetite, and investors remained cautious overall. ⑶ The FTSE Bursa Malaysia KLCI closed down about 4 points, or about 0.3%, at around 1674 points, after the previous trading day was closed for Malaysia Day. ⑷ The index opened slightly lower and fluctuated between 1670 and 1685 points during the day, showing an overall weak trend. ⑸ Market breadth was weak, with the number of declining stocks significantly exceeding the number of advancing stocks; approximately 673 stocks declined while approximately 465 stocks advanced. ⑹ In terms of trading volume, volume rebounded slightly to approximately 3.6 billion shares, with a turnover of approximately 3.25 billion ringgit, a slight increase compared to the previous trading day. (7) Analysts maintain a cautious bias towards Malaysian stocks given the high yields on US Treasury bonds and the uncertain global interest rate outlook. (8) However, as major indices approach oversold territory, recent weakness may gradually attract bargain hunters, especially for fundamentally sound stocks. (9) Investors will also be watching the Bank of Japan's interest rate decision and Malaysian inflation data for further clues about regional monetary policy and domestic price pressures. (10) Technically, major indices have formed another bearish candlestick pattern, maintaining a pullback pattern. Short-term resistance levels are at 1687 and 1700 points, while support levels are at 1666 and 1655 points. (11) Among heavyweight stocks, Malayan Banking and CIMB declined, while Public Bank and Tenaga Nasional remained flat. Some healthcare and consumer stocks also saw slight declines. (12) Market sentiment remains influenced by concerns about the external interest rate environment and Trump's tariff rhetoric in the short term. Going forward, attention will be focused on whether regional policy signals and domestic inflation data can provide directional guidance.