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Global bond inflows to emerging Asian markets signal shift in outlook

In August, global funds have poured $1.4 billion into Indonesia bonds in the first net addition in six months, while India has seen them loading up on rupee notes of $680 million

Photo: Bloomberg
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A bulk of the inflows in August came in during the first half, as markets perceived comments from Powell at the July FOMC to be less hawkish. (Photo: Bloomberg)

Marcus Wong | Bloomberg
Overseas investors are turning into net buyers of key emerging markets bonds in Asia for the first time in months, hinting at more significant inflows if the Federal Reserve goes for a more calibrated rate tightening.
 
In August, global funds have poured $1.4 billion into Indonesia bonds in the first net addition in six months, while India has seen them loading up on rupee notes of $680 million, a gain in seven months. Even Thailand saw the first inflow since May.

The inflows suggest foreign funds were betting that the Fed will pivot and become less hawkish amid signs of

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First Published: Aug 25 2022 | 12:02 PM IST

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