Amid an emerging market bond sell-off, traders eye attractive Asean moves

[SINGAPORE] A sell-off in emerging market (EM) bonds is beginning to uncover selective opportunities in South-east Asia, as investors look past near-term volatility to position for higher yields and potential reversals.

While the general outlook remains cautious, portfolio managers told The Business Times that they are becoming increasingly optimistic on pockets of South-east Asia’s markets – as both safe-haven assets and oversold bonds become attractive.

For economies in the region more insulated from the effects of the Iran war, fiscal stability has translated into bond inflows as traders flock to markets with stronger external balances and buffers against energy‑driven inflation shocks.