A Growing Debt Mountain Is Starting to Crack as Asia Buyers Balk
- Yields have climbed in India, Indonesia, Korea on huge supply
- Pressure grows on Asia central banks to step up debt purchases
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Bond investors in three of Asia’s biggest emerging markets are starting to push back against record increases in government borrowing, an ominous sign for policy makers trying to revive economic growth with fiscal stimulus.
In India, dwindling appetite for sovereign bonds drove yields to their biggest increase in more than two years last month while Indonesia’s latest bond auction drew the fewest bids since April. Rates in South Korea have surged to the highest level in five months.