Asia ex-Japan US$ bond marketing stalls

[SINGAPORE] Companies in Asia outside Japan paused the marketing of US dollar-denominated notes yesterday as markets quieten in the lead up to Christmas. Bond returns in the region are poised for their first annual loss in five years.

US currency securities have fallen 0.3 per cent since Dec 31, set for their first 12-month decline since 2008 when they lost 14 per cent, Bank of America Merrill Lynch indexes show. There haven't been any US dollar bond sales in Asia since Dec 5, the longest lull since the five business days through to Nov 14, according to data compiled by Bloomberg.

Investors are weighing the timing of any cuts to the Federal Reserve's monetary support amid budget negotiations in Washington. China's trade surplus widened last month to the most in more than four years as exports exceeded estimates, a sign that global demand is helping sustain a recovery in the world's second-biggest economy.