Asian domestic bond markets set for big growth

Asian governments will turn to local bond markets to finance stimulus packages, ADB report says.

Asian governments will increasingly turn to their domestic bond markets to finance the spending plans necessary to counter the expected economic slowdown in the region, says the Asian Development Bank ADB in a new report.

Weaker growth rather than inflation is now clearly the main risk for emerging Asian economies, but while healthy fiscal positions allow room for stimulus packages, the global credit crisis means governments will have to look to local funding sources, according to the November issue of...

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