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Hawkish Bets Ebb in Asia as Global Recession Fears Spill Over

  • Asian swaps eased since mid June as rate hike bets dialed back
  • Rates in region were earlier overpriced on the way up: Natwest
Updated on

Traders are dialing back rate hike bets in emerging Asia as growth concerns steadily overtake inflation angst.

Swaps in South Korea, Malaysia, India and Thailand have all been dropping since mid June amid easing price pressures and concerns over spillover effects from stumbling growth elsewhere. This volte face followed the three months to June when an index of EM Asia bonds registered losses of 6%, the largest since 2016, as inflation galloped to multi-year highs.