KUALA LUMPUR, April 24 -- Malaysia's bond market is rallying on rising expectations that Bank Negara Malaysia will ease interest rates amid trade tensions and a faltering growth outlook.

According to a Bloomberg report, ringgit swaps are pricing in 30 basis points of rate cuts over the next six months, doubling from earlier forecasts.

A recent three-year bond sale drew the strongest investor interest in over half a year, signalling a bullish bet on lower rates.

Analysts say such a move would ease borrowing costs and support capital markets during a period of global uncertainty.

"Ringgit rates market has increased dovish bets for BNM," said Maybank Securities' head of fixed-income research Winson Phoon, who explained that the country's...