According to the latest edition of the Asia Bond Monitor, local currency government bond yields in advanced economies and emerging East Asia climbed between 31 October and 18 November due to increased concerns over the direction of the United States economy, which has strengthened, therefore increasing the likelihood that the Federal Reserve will raise the policy rate in December. The regionís LCY bond market expanded 3.3% quarter-on-quarter (q-o-q) and 19.2% year-on-year (y-o-y) in the third quarter of 2016, reaching USD10,435 billion at the end of September. A copy of the full report is available at http://asianbondsonline.adb.org/documents/abm_nov_2016.pdf.
Consumer price inflation in Indonesia rose to 3.6% y-o-y in Novemberóits fastest pace since Aprilófrom 3.3% y-o-y in October. In the Republic of Korea, consumer prices rose 1.3% y-o-y in November, the same pace recorded in October. Thailandís consumer price inflation rose for the eighth consecutive month in November, recording a 0.6% y-o-y increase after gaining 0.3% y-o-y in October. In Viet Nam, inflation rose to 4.5% y-o-y in November from 4.1% y-o-y in October.
The Republic of Koreaís real gross domestic product growth in the third quarter of 2016 was revised downward to 0.6% q-o-q and 2.6% y-o-y from advance estimates of 0.7% q-o-q and 2.7% y-o-y released on 25 October.
The Republic of Koreaís merchandise exports rose 2.7% y-o-y in November to USD45.5 billion, while imports rose 10.1% y-o-y to USD37.5 billion. Thailandís merchandise exports contracted 4.3% y-o-y to USD17.6 billion in October and merchandise imports rose 7.4% y-o-y to USD15.8 billion. Viet Namís total exports increased 12.3% y-o-y to USD15.6 billion in November and imports increased 17.4% y-o-y to USD16.0 billion.
The Republic of Koreaís current account surplus widened to USD8.7 billion in October from USD8.1 billion in September. Thailandís current account remained in surplus at USD2.9 billion in October.
Industrial production growth in Japan slowed to 0.1% month-on-month (m-o-m) in October from 0.6% m-o-m in September. Viet Namís industrial production growth slowed to 2.0% y-o-y in November from 6.0% y-o-y in October. Industrial production in the Republic of Korea fell 1.6% y-o-y in October, following a 1.7% y-o-y decrease in September, due to a contraction in manufacturing production.
The Peopleís Republic of Chinaís Purchasing Managers Index for the manufacturing sector continued to expand in November, climbing to 51.7 from 51.2 in October. The nonmanufacturing Purchasing Managers Index also expanded, rising to 54.7 in November from 54.0 in October.
The Republic of Koreaís external debt position increased by USD8.6 billion in the third quarter of 2016 to reach USD400.4 billion at the end of September.
Local currency government bond yields fell for all tenors in Indonesia and Malaysia; and for most tenors in the Republic of Korea, the Philippines, and Viet Nam. Yields rose for all tenors in Singapore; and for most tenors in the PRC, Singapore, and Thailand. Meanwhile, yield movements were mixed in Hong Kong, China. Yield spreads between the 2-year and 10-year tenors widened in all markets in the region except for Indonesia and Viet Nam; while the spread was unchanged in Singapore.