Connect with us

Popular World News

Most Asian bonds face foreign outflows in July on virus worries By Reuters

Ireland extends main COVID-19 supports for firms, tapers others By Reuters


Most Asian bonds face foreign outflows in July on virus worries By Reuters

By Gaurav Dogra (Reuters) – Most Asian bonds faced foreign outflows in July, deterred by a rapid spread of the Delta coronavirus variant that raised concerns over the region’s recovery. Foreigners sold a combined net total $2.06 billion in Indonesia, Malaysian, Thai and Indian bonds, data from regulatory authorities and bond market associations showed. “Global investors are likely cautious around upcoming Fed taper and the prospects of weaker Asian currencies. Current wave of virus resurgences across Asia and the resultant downside risks to regional growth are also weighing on investor sentiments,” said Duncan Tan, a strategist at DBS Bank. (Graphic: Foreign flows into Asian bonds On the other hand, they bought a net $8.07 billion worth of South Korean bonds last month, the data showed. Tan said South Korean bonds tend to see stronger inflows during times of investor caution. “Because, holding Korean Treasury Bonds on an FX-hedged basis tends to be a good hedge for weaker regional growth and global market volatility.” The fast spread of the Delta variant in the region hit economic activity last month, with Indonesia, Thailand and Malaysia reporting a contraction in manufacturing activity. Malaysia faced foreign outflows worth $862 million, compared with outflows of $120 million in June. (Graphic: Foreign investors’ holdings in Asian bonds’%20holdings%20in%20Asian%20bonds.jpg) Indonesia and Thailand saw net selling of $794 million and $302 million respectively. Indian bonds also booked cross-border outflows for a seventh straight month, amounting a net $105 million.
“Asia’s resurgent virus situation, especially among ASEAN economies, has prompted us to downgrade our 2021 growth and FX outlooks for the region,” said Khoon Goh, head of Asian research at ANZ. “It has also triggered portfolio outflows, which will only ease and reverse when the current pandemic wave has meaningfully ebbed and growth recovery resumes,” he said.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!