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Treasury Yield Jump Rips Into Asia’s Sheltered Debt Markets

  • Shorter-dated yields have jumped amid rising hawkish bets
  • Central banks in region making last stand against tightening
Updated on

The suffering for Southeast Asian bonds isn’t over yet, according to a Bloomberg analysis that shows how their central banks’ last stand against tighter policy risks fueling inflation.

Returns on Malaysian, Indonesian, Thai and Philippine debt have all turned negative this year, compared with big gains in countries such as Brazil and South Africa. The woes look set to deepen as U.S. real yields turn positive, taking away a key support for Asian bonds and discouraging inflows into their currencies.