Emerging East Asia bond yields increased due to prolonged expectation of elevated interest rates.
Bond yields in emerging East Asia increased due to strengthened expectations that interest rates will remain elevated for a longer period, according to the Asian Development Bank's latest Asia Bond Monitor. In March-April, bond outflows from regional markets reached $20bn, prompted by the likelihood of higher-for-longer interest rates and slower-than-expected disinflation. Regional currencies depreciated against the US dollar, while credit default swap spreads widened in most markets.
June 26, 2024
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