Asia’s Bonds Pressured by Interest Rate, Currency Concerns – ADB Report

MANILA, PHILIPPINES – Emerging East Asia’s bond markets came under pressure in the past quarter amidst concerns over softer growth, depreciating currencies, and US interest rates, the Asian Development Bank’s (ADBs) latest Asia Bond Monitor said.

“Asian bond markets were buffeted by strong headwinds, including anticipation of the US Federal Reserve rate hike, which has led to an outflows of funds in some countries,” said ADB Chief Economist Shang-Jin Wei. “The uncertainty in global bond markets points to the need for continued efforts to strengthen local currency bonds, which together with prudential regulations, can improve a country’s resilience to foreign monetary and financial shocks.”  Read full report



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