DBS Group Research economists analyze Asian bond markets in the face of the current geopolitical shock. The note pointed out that yields have increased in India and Indonesia, but to a lesser extent than in other Western countries, while South Korea has been more volatile. It argues that Chinese bonds remain well supported by ample buffers, and Singapore continues to attract safe-haven capital inflows despite a likely low in yields.
China isolated, Singapore attracts flows
“Asian bond markets are also in flux, although action is varied and shows varying degrees of sensitivity.”
“High-yield entities such as India and Indonesia have seen their bond yields rise, but not as dramatically as their Western counterparts have shown.”
“South Korean bond yields reflect relatively higher tensions and volatility.”
“China, despite being the main importer of fuel from the Middle East, is characterized by several layers of isolation.”
“As for Singapore, yields may have bottomed out, but the flow of investors into safe havens is likely to continue.”
(This article was created with the lend a hand of an artificial intelligence tool and has been reviewed by an editor.)
