Home > United Nations Online Network in Public Administration and Finance (UNPAN)
1. Global
2. Africa
3. Arab States
Arab States
4. Asia & Pacific
Asia & Pacific
5. Europe
6. Latin America & Caribbean
Latin America & Caribbean
7. North America
North America
UNPAN Asia & Pacific

Public Administration News  
Emerging East Asian Bond Yields Fall as Region Withstands Global Uncertainty
Source: https://www.adb.org
Source Date: Wednesday, March 22, 2017
Focus: ICT for MDGs, Knowledge Management in Government
Created: Mar 24, 2017

Bond yields in emerging East Asian markets fell between 31 December and mid-February despite the risk of accelerated pace of interest rate hikes in the United States (US), the Asian Development Bank’s (ADB) latest Asia Bond Monitor said.

“Emerging East Asia’s improved growth outlook and strong fundamentals have buffeted the region from risks of possible capital outflows,” said Yasuyuki Sawada, ADB Chief Economist. “Policies to improve the transparency of financial markets and encourage long-term investment can help countries face future external shocks.”

Amidst solid growth and rising inflation, investors across most of the region have shown increased confidence in emerging East Asian local currency (LCY) government bonds, leading to declining yields. Indonesia’s implementation of sound reforms led it to experience the largest decline in yields over the period. The People’s Republic of China (PRC), meanwhile, saw yields on 2-year and 10-year government bonds rise, as the government introduced new measures to protect against asset and credit risks.

All of the region’s currencies appreciated against the US dollar, except for the Hong Kong dollar and the Philippine peso. Equity markets also rose in the region.

Emerging East Asia’s outstanding local currency bonds reached $10.2 trillion by end-December, with growth moderating on both a quarter-on-quarter and year-on-year basis. Government bonds account for 64.6% of the regional total. The PRC remains the region’s largest bond market, with outstanding bonds standing at $7.1 trillion — or 70% of the region’s total.

The report highlights several risks for the region’s bond markets as the global economy recovers. These include the acceleration of rate hikes by the US Federal Reserve, uncertainty over policies in major developed economies, particularly the US and the eurozone, and the depreciation of the Chinese renminbi, which challenges growth prospects in Asia.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.

News Home

 Tag This
 Tell A Friend
del.icio.us digg this Slashdot
0 ratings
Views: 567

Comments: 0 Favorited: 0 Bookmarked: 0 Tagged: 0

0 Comments | Login to add comment

Site map | FAQs | Terms and Privacy | Contact Us
Copyright 2018 by UNPAN - United Nations Public Administration Network