Emerging East Asian Local Currency Bond Markets: A Regional Update
Issue: September 2024
Moderating inflation and growing expectations of central bank monetary policy easing in both advanced and regional markets have led to improved financial conditions in emerging East Asia, according to the September 2024 issue of the Asia Bond Monitor. Since July, financial conditions strengthened following hints by the United States Federal Reserve about a potential policy rate cut in September. Local currency bond market size in the region reached USD25.1 trillion at the end of June, growing 2.3% q-o-q, buoyed by a 15.4% q-o-q expansion in issuance which tallied USD2.6 trillion in Q2. ASEAN+3 sustainable bond issuance, which tallied USD51.0 billion in Q2, saw longer tenor bond issuance and an increase in the size-weighted average tenor to 6.9 years from 5.0 years in Q1.