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Philippines : LOCAL investors demand local currency bonds in EAST ASIAN markets

June 6, 2014

Local and foreign investors' demand for local currency bonds in emerging East Asian markets is rising again, the Asian Development Bank (ADB).

The lender said it expects investors' demand to be sustained in the coming months given the strong economic growth prospects in the region.

Most emerging East Asia bond markets regained their bounce. Thailand's bonds could buck the trend given recent political upheavals.

ADB said bond markets in emerging East Asia expanded by 9.5% on year to US $7.6 trillion in the 1Q.

East Asia's government bond market grew 2.2% quarter on quarter and 8% year on year to US $4.6 trillion during the period. Corporate bonds grew 1.9% quarter on quarter and 11.7% year on year to reach US $3.1 trillion.

ADB warned that risks such as the US Federal Reserve's decision to reduce its asset purchases, the possible slowdown in China's economic growth and moves by the European Central Bank to counter the threat of deflation could threaten the region's bond market growth.

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Source: TendersInfo (India)

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