Bond Markets Are Showing Turnaround Signs in Emerging Asia
- Goldman Sachs says improving inflation outlook to have impact
- Local dynamics becoming more crucial for Asia bonds: abrdn Plc
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Signs of better news on inflation and foreign inflows are appearing for emerging Asia bonds, helping to prime the market for a recovery once the Federal Reserve turns less hawkish.
Goldman Sachs Group Inc. says an improving inflation outlook would have a material impact at this stage. The latest consumer-price data for South Korea, Thailand and the Philippines came in below estimates, while some sovereign debt saw foreign money return. The repercussions of an aggressive Fed on some emerging Asia notes are also waning, analysis shows.