Foreigners turn net sellers of Asian bonds in September
Oct 27 (Reuters) - Foreigners turned net sellers of Asia
ex-China bonds in September as concerns mounted over the
region's weaker growth outlook, slowing exports, and the U.S.
Federal Reserve's aggressive tightening measures.
Overseas investors last month net sold a total $2.9 billion
worth of bonds in India, Indonesia, Malaysia, South Korea and
Thailand, data from regulatory and bond market associations
showed.
Foreigners had been net buyers of Asian bonds in the
previous two months.
Indonesian bonds and Thai bonds faced outflows worth $1.9
billion and $725 million respectively in the last month, while
South Korean bonds had net sales of $681 million.
By contrast, Indian bonds received an inflow of $510 million
in the month, the data showed.
The U.S. 10-year Treasury yields jumped 67 basis points in
the last month, and were yielding 4.0632%.
"The external environment looks challenging into year-end,
and further portfolio outflows are likely, as U.S. yields and
the USD head higher and weigh on asset markets in Asia," said
Khoon Goh, head of Asia research at ANZ in a report on Thursday.
(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in
Bengaluru; editing by Barbara Lewis)
Log In Required
Line of Credit Log In Required
