Local demand shielding Asian bonds after Brexit

Hong Kong

THE relative stability of Asian dollar bonds after Britain's vote to leave the European Union shows how rising local demand is shielding the region's debt from global market volatility, Pacific Investment Management Co and JPMorgan Chase & Co say.

"I see very limited impact on Asian bonds from 'Brexit'," said Ben Sy, the head of fixed income, currencies and commodities at the private banking arm of JPMorgan in Hong Kong. "Asian bonds continue to be underpinned by strong technical and local bids, and flight to quality."