Funds Pile Into Southeast Asian Bonds Even at Record Low Yields

Investors are making a beeline for Southeast Asian sovereign bonds despite their record low yields amid a shift away from US assets and on bets for further interest-rate cuts in the region.

The average of 10-year yields in Southeast Asian nations relative to US Treasuries has dropped to the lowest in data going back to 2011, according to Bloomberg calculations. The region’s bonds are benefiting from investors seeking alternatives to US assets as part of the “sell America” trade fueled by unease over President Donald Trump’s policies.