Asia’s G3 bond markets got off to a better start in January than even the biggest bulls predicted a month ago, but bankers and fund managers warn that it is unlikely to last.
Market participants attribute strong primary market demand and secondary market tightening almost entirely to the US Federal Reserve’s end-of-year decision to become more “data-dependent” and “patient” regarding interest rate hikes. Lower rates keep Asia stronger.
Sean McNelis, HSBC’s co-head of Asia-Pacific debt capital markets, sums up the prevailing optimistic view when he says “Lower US rate expectations have helped Asian bond markets...
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