Asia's ageing shields bonds from rout
Richer economies in East Asia with older populations tend to prefer fixed income, thus increasing demand for bonds
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THE global bond rout is sparing Asia's more developed economies as central banks fight deflation risks and pension savings swell among rapidly ageing populations.
While eurozone and US sovereign debt lost 3.6 per cent and 2 per cent, respectively, in the past month, similar notes in China and Taiwan returned 1.1 per cent and 0.3 per cent, indexes compiled by Bloomberg show. Markets are benefiting as policy makers in East Asia keep borrowing costs low amid the prospect of Federal Reserve rate increases. The United Nations forecasts people over 60 will almost triple in the region by 2050.
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