Issue: November 2011Demand for local bonds is still strong in face of rising risks and global weakness. The local currency bond markets in emerging East Asia grew by 5.5% y-o-y at the end of September to reach USD5.5 trillion, driven by strong growth in corporate bonds. Yield curves in most LCY government bond markets flattened and shifted downwards as market and policy focus moved to support growth. In the recent AsianBondsOnline Bond Market Liquidity Survey for 2011 current concerns about global financial stability contributed to a modest widening of bid-ask spreads from the levels of last year's survey.