Investors flock to Asian bonds as US yields slide amid low inflation

Singapore

ASIA bond demand is running at its highest level in eight months and looks set to stay firm this year, boosted by the region's higher returns at a time when stubbornly low inflation in the United States is keeping a lid on Treasury yields.

Investors poured US$9 billion into Asian government and corporate bonds in May, topping US$8.8 billion in April, ANZ Research shows. Both were the highest levels since September 2016.