Asia Bond Monitor - June 2024

<p>This edition shows emerging market financial conditions weakened as investor risk appetite waned over expected higher-for-longer interest rates.</p><p><br></p><p>Slower than expected disinflation cast uncertainty on future monetary policy stances and pushed bond yields up in both advanced economies and in emerging East Asia prompting a $20 billion bond outflow from March to April. Local currency bond issuances contracted 9% in East Asia totaling $2.2 trillion. Growth in the local currency bond market slowed to 1.4% reaching $24.7 trillion in the first quarter. Sustainable bond issuances in ASEAN+3 contracted 13.3% with stock reaching $805.9 billion by the end of March.</p>