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Emerging East Asian Local Currency Bond Markets: A Regional Update

Issue: November 2024

Financial markets in emerging East Asia in late Q3 saw heightened uncertainty around the Federal Reserve's policy stance and the United States elections, according to the November 2024 Asia Bond Monitor. Long-term bond yields rose in most regional markets tracking the bond yield increase in the United States. Nevertheless, most short-term bond yields declined following policy rate cuts in major advanced economies and some regional markets, and bond issuance in Q3 remained strong. Local currency bond issuance in emerging East Asia recorded USD3.0 trillion (11.3% quarter-on-quarter growth), pushing the local currency bonds outstanding to USD26.8 trillion at the end of September. Sustainable bonds outstanding in ASEAN+3 reached USD893.1 billion on strong issuance of USD73.7 billion (42.0% quarter-on-quarter growth). The ABM includes a special section on how digital green bonds can help scale up sustainable finance and mitigate greenwashing risk.

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• Download the full report.
  
• Executive Summary
  
• Developments in Regional Financial Conditions
  
• Bond Market Developments in the Third Quarter of 2024
  
• Recent Developments in ASEAN+3 Sustainable Bond Markets
  
• Policy and Regulatory Developments
  
• Digitalization in Green Bond Markets
  
• Market Summaries