Asia Bond Monitor - November 2024

<p>This edition reviews recent financial conditions and bond market developments in emerging East Asia provides updates on policies and regulations and discusses digital green bonds. </p><p></p><p>Financial conditions in emerging East Asia weakened slightly from 2 September to 31 October 2024 amid heightened uncertainties around the Federal Reserve's future monetary policy path and elections in the United States. In most regional markets short-term sovereign bond yields declined following domestic policy rate cuts while 10-year sovereign bond yields rose tracking 10-year yield movements in the United States. Local currency bonds outstanding in emerging East Asian markets totaled USD26.8 trillion at the end of September while sustainable bonds outstanding in ASEAN+3 markets posted strong growth of 4.1% quarter-on-quarter in the third quarter to reach USD893.1 billion. This edition of the Asia Bond Monitor includes a discussion of how digital green bonds which feature efficient monitoring and enhanced transparency can help scale up sustainable finance and mitigate greenwashing risk.</p>