KUALA LUMPUR, Aug 26 — The cost of insuring Malaysian government bonds fell to a 15-month low on speculation an improving US outlook will bolster the Asian nation’s exports.

Home sales in the world’s largest economy unexpectedly climbed in July and manufacturing rose to a four-year high in August, official US data showed last week. Malaysia’s gross domestic product increased at the fastest pace in more than a year in the second quarter while overseas shipments advanced for a 12th month in June, according to reports this month.

“In Malaysia, we can have a more sustainable, strong growth,” said Dariusz Kowalczyk, a Hong Kong-based strategist at Credit Agricole CIB. “We have a strong rebound in the US economy and that would be positive for Malaysian exports.”

Five-year credit-default swaps fell one basis point to 78.5 in New York yesterday, the lowest level since May 2013, CMA data show. The swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.

The ringgit rose 0.1 per cent to 3.1596 per dollar as of 9:31am in Kuala Lumpur, according to data compiled by Bloomberg. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, dropped six basis points, or 0.06 percentage point, to 5.85 per cent.

Southeast Asia’s third-largest economy grew 6.4 per cent in the second quarter from a year earlier, the fastest pace since the final three months of 2012 and exceeding the median estimate of economists for a 5.8 per cent gain, an August 15 report showed. Overseas shipments advanced 7.9 per cent in June from a year earlier, after climbing 16.2 per cent in the previous month, according to data released August 6.

Malaysian exports will benefit from the US housing recovery and rising demand from China, Nomura Holdings Inc’s Singapore-based economist Brian Tan wrote in an August 22 research note.

The yield on Malaysia’s 4.181 per cent sovereign bonds due July 2024 was little changed at 3.97 per cent, data compiled by Bloomberg show. It has climbed eight basis points this month. — Bloomberg