Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Gold Stocks Are Supercharging This Forgotten Fund
    • China ETFs See Outflows As Trump Comments Trigger Volatility
    • PFI Asset Management launches 1st sponsored mutual fund PFI Cashi
    • Powering the Future of Innovation: Frontier Tech – How Early Investments Are Shaping Tomorrow’s Breakthroughs
    • PFI Asset Management launches first sponsored mutual fund ‘PFI Cashi’
    • SBI raises ₹7,500 crore through Basel III tier 2 bonds at 6.93% coupon
    • Altcoin ETF options stalled by shutdown
    • Sovereign Gold Bonds or Gold ETFs: What Should You Choose?
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Bonds»Inflows into Asian bonds slow on caution over US rate cuts, elections
    Bonds

    Inflows into Asian bonds slow on caution over US rate cuts, elections

    October 16, 2024


    By Gaurav Dogra and Patturaja Murugaboopathy

    (Reuters) – Asian bond markets attracted overseas investments for the fifth consecutive month in September, though the pace of inflows slowed due to diminished expectations for further rate cuts by the U.S. Federal Reserve and caution ahead of U.S. elections.

    Cross-border investors bought local bonds in Indonesia, India, Malaysia, South Korea and Thailand, totalling a net $4.99 billion, which was less than $14.09 billion worth of net purchases the prior month, data from regulatory authorities and bond market associations showed.

    Analysts anticipate a further decline in flows into Asian bonds due to the recent strengthening of the U.S. dollar and the increase in U.S. bond yields this month.

    The U.S. dollar index hit a two-month high of 103.397, this week, while the yield on U.S. 10-year notes reached a two-and-a-half-month high of 4.12% after strong jobs data and higher-than-expected September inflation reduced expectations for large Fed rate cuts.

    Saktiandi Supaat, an analyst at Maybank, noted that near-term risks for emerging market currencies persist, with a potential win by Republican presidential candidate Donald Trump possibly triggering de-risking due to his tariff proposals, while a victory by Democrat Kamala Harris might support a global soft landing and gradual Fed rate easing.

    In September, foreigners purchased a net $2.76 billion worth of South Korean bonds, less than half the amount received in the previous month, while Indonesian bonds attracted about $1.4 billion in overseas capital.

    Additionally, foreigners pumped about $427 million, $253 million and $156 million respectively into Thai, Malaysian and Indian bonds last month.

    However, analysts are optimistic about the inclusion of Asian bonds in global bond indexes, which should bolster inflows.

    Indian government securities were added to JPMorgan’s Government Bond Index-Emerging Markets in June 2024 and will join Bloomberg Index Services’ Emerging Market Local Currency Index in January 2025.

    Additionally, FTSE Russell will include South Korean government bonds in the World Government Bond Index and Indian bonds in the Emerging Markets Government Bond Index starting in November 2025 and September 2025, respectively.

    “Hopefully, the KTB yields’ upward march could be somewhat offset by the capital inflow amid its inclusion into the WGBI Index. The changing rate cut expectations will particularly weigh on higher yielders like IDR rates,” said Samuel Tse, an analyst at DBS Bank.

    (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Chizu Nomiyama)



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    SBI raises ₹7,500 crore through Basel III tier 2 bonds at 6.93% coupon

    October 20, 2025

    Sovereign Gold Bonds or Gold ETFs: What Should You Choose?

    October 20, 2025

    Man AHL launches awaited UCITS strategy, the Man Systematic Cat Bonds fund

    October 20, 2025
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023

    China ETFs See Outflows As Trump Comments Trigger Volatility

    October 20, 2025
    Don't Miss
    Mutual Funds

    Gold Stocks Are Supercharging This Forgotten Fund

    October 20, 2025

    In the 1990s, Muhlenkamp Fund’s clever value investing formula made it a star among no…

    China ETFs See Outflows As Trump Comments Trigger Volatility

    October 20, 2025

    PFI Asset Management launches 1st sponsored mutual fund PFI Cashi

    October 20, 2025

    Powering the Future of Innovation: Frontier Tech – How Early Investments Are Shaping Tomorrow’s Breakthroughs

    October 20, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    UAUG: Time To Add Buffer ETFs For Equity Exposure?

    February 15, 2025

    From Groceries to Finance: ONDC‘s Bold Move into Insurance and Mutual Funds

    August 23, 2024

    Union Local School District Seeking $34.6 Million Bond Issue for ‘Crucial Infrastructure’ | News, Sports, Jobs

    October 26, 2024
    Our Picks

    Gold Stocks Are Supercharging This Forgotten Fund

    October 20, 2025

    China ETFs See Outflows As Trump Comments Trigger Volatility

    October 20, 2025

    PFI Asset Management launches 1st sponsored mutual fund PFI Cashi

    October 20, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹10,000 monthly SIP in this mutual fund has grown to ₹1.52 crore in 22 years

    September 17, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.