Foreign investors cut back on emerging Asia govt bonds in anticipation of US rate hike
Singapore
FOREIGN investors have cut holdings in most emerging Asian government bonds so far this month on expectations that US interest rates will rise in December and that other major central banks will not ease further.
South Korea, India and Thailand have suffered outflows so far in October.
"The global environment for bonds has become less favourable with major central banks contemplating reducing stimuli," said Eugene Leow, interest rate strategist for DBS Bank in Singapore.
The US Federal Reserve is expected to raise interest rates in December, as three months of slower employment growth is not considered enough to st…
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