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Surging Inflation Puts Asia’s Deal-Hunting Bond Buyers on Hold

  • Philippines, Indonesia, and Thailand CPI prints beat estimates
  • Shorter yields remain elevated as inflation concerns persist
Headline inflation in the Philippines quickened to 6.4% on year in July, outstripping estimates for a 6.1% gain. 

Headline inflation in the Philippines quickened to 6.4% on year in July, outstripping estimates for a 6.1% gain. 

Photographer: Geric Cruz/Bloomberg
Updated on

Investors looking to call the bottom in emerging Asian bonds may have to wait a little longer as inflation in the region shows few signs of peaking.

The latest consumer-price gains data from the Philippines, Indonesia, and Thailand surprised on the upside, signaling that cost pressures continue to outrun market forecasts. Shorter-dated yields, which are more sensitive to hawkish rate expectations, remain elevated as investors appear unconvinced that inflation has topped out for now.