Emerging Asia Bonds Are the New Standards for Fiscal Control

Bond investors worried about rising fiscal deficits are turning to an unusual haven: emerging markets.

While long-dated bonds in developed markets have come under pressure this year as investors grow wary about government spending, emerging-market bonds in Asia have become a hot pick. Yields have tumbled, foreign funds have flowed in and recent debt auctions have enjoyed strong demand, unlike a number of prominent developed-market sales from the US to Japan.