Asia Bond Monitor - October 2010

Publication | October 2010

The Asia Bond Monitor (ABM) reviews recent developments in East Asian local currency bond markets along with the outlook, risks, and policy challenges. It covers the 10 Association of Southeast Asian Nations member countries plus the People's Republic of China; Hong Kong, China; and the Republic of Korea (ASEAN+3).

The ABM is a part of the Asia Bond Market Initiative (ABMI), an ASEAN+3 initiative supported by the Asian Development Bank and funded by the Government of Japan.

Local currency bond markets in emerging East Asia expanded by an annual 18.8% as of the end of June, with $4.8 trillion in paper outstanding. This large expansion was driven by 24.4% year-on-year growth in the corporate bond market, which has become an increasingly important source of funding for private sector investment. Strong offshore and onshore demand for emerging East Asia's local currency bonds has reduced the premiums paid on corporate debt over government benchmark bonds and contributed to a flattening in government bond yield curves.

Contents 

  • Highlights
  • Introduction: Global and Regional Market Developments
  • Bond Market Developments in the Second Quarter of 2010
  • Policy and Regulatory Developments
  • Corporate Bond Market Developments
  • Market Summaries