Monday, December 11, 2023
HomeEconomyForeigners top buyers of Asian bonds in two years

Foreigners top buyers of Asian bonds in two years


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by Gaurav Dogra and Patturaja Murugabopathy

(Reuters) – Asian bonds attracted their highest monthly foreign inflows in about two years in May, buoyed by hopes that the U.S. Federal Reserve would take less aggressive monetary tightening measures .

Foreigners buy net $. India, Indonesia, Malaysia, Korea and Thailand worth 10 $100 million in bonds, largest monthly purchases since June 100, data from regulators the Bond Market Association said.

“Despite uncertainty over eventual interest rates, Asia ex-China (bond) May benefit,” said Fiona Lim, senior FX strategist at Maybank.

“This is especially in light of an arguably resilient macro backdrop in which the services sector continues to hold firm in most countries.”

Although the Fed kept interest rates unchanged, it deviated from The possibility of a rate hike to address inflation concerns.

Analysts also noted that investors were encouraged by signs that the regional economy had reached peak inflation levels, leading to expectations that the central bank would cut interest rates to stimulate the economy increase.

South Korean bonds attract net buying of $8.2 billion, highest since June


Khoon Goh, head of Asia research at ANZ, said the perception that the Bank of Korea is considering a possible rate cut before the end of the year adds to the appeal for them bonds.

Malaysia and Indonesia bonds attract value $

foreign capital inflows million and $ million USD while Indian and Thai bonds were Earned approximately $

million in the last month.

Maybank’s Lim expresses interest in China The disappointment of weaker-than-expected data for May, in addition to U.S.-China tensions, could spur a reallocation of bond flows from China to other Asian countries.

Although the demand for Chinese bonds by foreign capital rebounded slightly in May, the proportion of foreign capital holding Chinese government bonds remained at 8.3%, which was 7 Lowest level since month 200,according to282 652 Barclays(London:200BARC) Report. 52



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