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Asia Bond Monitor – March 2019

Publication | March 2019
Asia Bond Monitor – March 2019

This publication reviews recent developments in emerging East Asian local currency bond markets, and includes analysis of the fourth quarter of 2018.

It notes that the local currency bond market in emerging East Asia reached a size of USD13.1 trillion at the end of December 2018. Investor sentiment has improved but concerns persist about financial stability in the region.

Yields have fallen while foreign holdings have increased in most markets. Local currency (LCY) government bond yields declined in most emerging East Asian markets between 28 December 2018 and 15 February 2019. The foreign holdings share in LCY government bonds climbed during the fourth quarter of 2018 in all markets except the PRC and Malaysia.

This issue of the Asia Bond Monitor explains how emerging market currencies remain vulnerable to external shocks. It highlights the huge potential of green bonds as an alternative funding source for issuers in emerging markets, and notes that debt tends to be more expensive in markets with greater climate vulnerability.

About the publication

The quarterly Asia Bond Monitor reviews developments in emerging East Asian local currency bond markets. The report discusses key trends in the region’s bond markets, and the outlook, risks, and policy options. It covers the 10 members of the Association of Southeast Asian Nations and the People’s Republic of China; Hong Kong, China; and the Republic of Korea.

Contents 

  • Highlights
  • Executive Summary
  • Introduction: Bond Yields Fall in Emerging East Asia
  • Bond Market Developments in the Fourth Quarter of 2018
  • Policy and Regulatory Developments
  • Market Summaries
    • China, People’s Republic of
    • Hong Kong, China
    • Indonesia
    • Korea, Republic of
    • Malaysia
    • Philippines
    • Singapore
    • Thailand
    • Viet Nam