Tag Archives: Sovereign Bond

Asian Fixed Income: Indonesian Sovereign Bonds Were the Big Winners in 2017

With the growing appetite for emerging market debt and in the hunt for better yields, Indonesian sovereign bonds have been popular this year. The strong rally has continued since the first quarter (see a previous piece here). The S&P Indonesia Sovereign Bond Index, which seeks to track the local currency denominated sovereign bonds, jumped 15.24% Read more […]

Asian Fixed Income: The Philippines After the Key Overnight Rate Cut

The Central Bank of the Philippines unexpectedly lowered the key overnight rate to 3% from 4% on June 3, 2016, as it shifted to an interest rate corridor system to “improve the transmission of monetary policy.”[1]  Sovereign bonds have had a strong rally since then; the total return rose 10.82% YTD, while the yield-to-maturity tightened Read more […]

Asian Fixed Income: Indonesian Bonds Rally

Despite hawkish FOMC minutes and a stronger U.S. dollar, Indonesian bonds rallied 10.15% year-to-date (YTD), outperforming the other nine countries tracked by the S&P Pan Asia Bond Index, data as of Jun 7, 2016. The S&P Indonesia Bond Index tracks the performance of local currency denominated government and corporate bonds from Indonesia and with a Read more […]

Asian Fixed Income: Southeast Asian Bond Markets

2015 was a difficult year for emerging markets, as investors reduced their exposure to emerging markets and some shifted to developed markets. With concerns about a growth slowdown, a strong U.S. dollar, and the plunge in oil prices continuing to linger, some investors have remained cautious about allocating their exposure to emerging markets. Looking specifically Read more […]

Asia Fixed Income: People’s Bank of China (PBoC) Rate Cuts

On June 28, 2015, the PBoC announced a 25 bps policy rate cut and a 50 bps targeted reserve ratio cut to support growth. Following the news, the money market rate opened lower and the yuan weakened. While there was no significant or immediate impact on China’s onshore bond market, the yield-to-maturity tracked by the Read more […]

Surprises Come With Attractive Yields

Despite the headline news on India’s high deficits and low economic growth, the Indian bonds remain very popular among investors who hunt for yields. Let’s be realistic, while a 10 year U.S. Treasury Bond pays 2.7%, a similar maturity of Indian sovereign Bond is offering a yield of 8.8%! The S&P BSE India 10 Year Read more […]