Asia Bond Monitor Series

This publication reviews recent developments in East Asian local currency (LCY) bond markets against a backdrop of deteriorating global financial conditions and provides an assessment of the outlook, risks, and policy options.

This edition reviews developments in East Asian financial conditions and local currency bond markets. Long-term bond yields declined reflecting a dimming growth outlook while bond issuance achieved a record-high in the second quarter of 2022.

This edition includes discussion of pandemic-related asset purchase programs, along with US monetary policy and financial market reactions in developing Asia.

This edition considers recent trends in financial conditions and developments in local currency bond markets in emerging East Asia. It includes the results of the 2021 bond market liquidity survey.

This edition sets out recent developments in East Asian local currency bond markets and discusses the region's economic outlook, the risk of another taper tantrum, and price differences between labeled and unlabeled green bonds.

In the second quarter of 2021, rising COVID-19 cases have cast a shadow over emerging East Asia's growth outlook. Yet the region's financial conditions remain broadly stable amid accommodative monetary policy stances despite some weakening signs.

This edition notes mixed local currency government bond yield movements in emerging East Asia. It covers green sukuk (Islamic bonds), ASEAN+3 sustainable bonds, fintech for sustainable investments, and governing sustainable finance.

This edition reviews financial conditions in East Asia and risk implications to the global economic recovery, including the coronavirus disease (COVID-19) vaccine rollouts and liquidity conditions in regional bond markets.

This edition highlights trends in emerging East Asian local currency bond markets and explores bank efficiency and financing for a sustainable recovery.

The size of emerging East Asia’s local currency bond market reached USD17.2 trillion at the end of June 2020. In the second quarter of 2020 the market expanded by 5.0% quarter on-quarter and 15.5% year-on-year.