Foreigners continued to purchase Asian bonds in March, but the inflows were mainly focused on South Korean bonds, as investors searched for safety among emerging-market bonds.
Overseas investors bought a net $7.4 billion worth of Asian bonds in March, the 10th consecutive inflow, data from regulatory authorities and bond market associations in South Korea, Malaysia, India, Indonesia and Thailand showed.
South Korean bonds saw a record inflow of $8.1 billion last month, the data showed.
"South Korean bonds tend to see outsized inflows during times of market volatility, due to foreign investors rebalancing from higher-beta Asian bonds into the safer Korean bonds," said Duncan Tan, a strategist at DBS Bank.
Despite a rise in U.S bond yields this year, South Korean bonds have been getting heavy inflows, bolstered by the country's stronger current account position, lower fiscal deficits, and better yields compared with other countries with same sovereign ratings.
Meanwhile, Malaysian bonds drew an inflow of $1.4 billion last month, helped by their higher yields and the strong economic growth expected in the second quarter.
According to a Reuters poll, Malaysia's economy is expected to grow 15.8% in the second quarter, the second highest in the region, behind India's 27%.
However, higher U.S. yields and a recent surge in COVID-19 infections in the region crimped money flows into other bond markets. Indonesia and Indian bonds saw outflows of $1.4 billion and $885 million respectively. Thai bonds had meagre inflows of $173 million.
DBS's Tan said he is not optimistic on the outlook for foreign inflows in coming months.
"External conditions would not be conducive as we expect US rates to continue to rise, and the US dollar to stay supported. Within the region, China’s sequential growth momentum seems to be slowing and several countries are also experiencing new infection waves," he said.
Reuters
Wed Apr 14 2021
Malaysia's economy is expected to grow 15.8 pct in the second quarter, the second highest in the region, behind India's 27 pct. REUTERSpic
Jalan sekitar Tambun ditutup, dilencong sempena sambutan Hari Bomba Sedunia
Penutupan dan lencongan itu akan bermula jam 6.30 pagi hingga 12 tengah hari pada Khamis hingga Sabtu ini.
Azerbaijan pertahan komitmen terhadap minyak, gas sebagai tuan rumah COP29
Azerbajian menasihatkan wakil dari 110 negara anggota COP29 supaya mengelak menuding jari sebaliknya tumpu kepada tindakan kolaboratif.
Banjir lumpur Taman Chepor Impian: Penduduk minta penjelasan, ganti rugi
Roslan mendakwa kejadian banjir kilat beserta lumpur yang berulang itu adalah disebabkan projek perumahan baharu di kawasan berdekatan.
Tiada penutupan ruang udara setakat ini - CAAM
Tiada penutupan ruang udara atau lapangan terbang di negara ini setakat ini, susulan letusan semula Gunung Ruang di Indonesia sebanyak tiga kali semalam.
Ketua Pegawai Eksekutif Pihak Berkuasa Penerbangan Awam Malaysia (CAAM) Datuk Kapten Norazman Mahmud bagaimanapun berkata ketinggian penerbangan telah dihadkan.
Ketua Pegawai Eksekutif Pihak Berkuasa Penerbangan Awam Malaysia (CAAM) Datuk Kapten Norazman Mahmud bagaimanapun berkata ketinggian penerbangan telah dihadkan.
Slogan pro-Palestin dan anti polis dilaungkan di Berlin
Demonstrasi aman sempena Hari Pekerja di Berlin pada Selasa diselingkan dengan jeritan slogan pro-Palestin dan anti polis.
Ribuan penunjuk perasaan banjiri ibu kota di Amerika Latin
Hari Pekerja Antarabangsa di kawasan Amerika Latin pada Rabu menyaksikan ribuan pekerja berhimpun di ibu kota utama untuk meneruskan perjuangan menuntut hak buruh dan tempatan.
Bendera Palestin diturunkan di New York
Rakaman saksi yang dikeluarkan pada Rabu memaparkan pegawai Jabatan Polis New York menanggalkan bendera Palestin dan menaikkan bendera Amerika di City College, New York.
Papagomo didakwa hari ini, kenyataan mengaib Agong
Bekas EXCO Pemuda UMNO, Wan Muhammad Azri Wan Deris atau lebih dikenali Papagomo, akan didakwa di Mahkamah Sesyen, pada Khamis kerana membuat kenyataan menghasut yang mendatangkan kebencian kepada Yang di-Pertuan Agong, Sultan Ibrahim.
Jawatankuasa kaji paras kenaikan gaji penjawat awam
Perlu ada satu jawatankuasa seperti mana di sektor swasta bagi mengkaji secara menyeluruh skim gaji penjawat awam secara khusus, walaupun terdapat kenaikan setiap tahun.
Individu disenarai hitam dilarang mengajar tahfiz
Tegas Mohd Naim, pihak tahfiz perlu patuh kepada Panduan Penubuhan dan Pendaftaran Institusi Tahfiz yang diterbitkan Jakim pada 2019.
Korea Selatan mulakan liga bola lisut secara tertutup
Liga KBO memulakan musim dengan perlawanan antara SK Wyverns dan Hanwha Eagles yang dijalankan secara tertutup di Incheon.
Doan dipenjara tiga tahun empat bulan, cederakan Kim Chol
Bernasib baik kerana pendakwaan menawarkan pertuduhan alternatif yang hanya membawa hukuman penjara 10 tahun berbanding pertuduhan asal iaitu membunuh yang memperuntukkan hukuman mati mandatori.
MMA: ONE Championship announces 2019 calendar, expands fight to Tokyo
ONE Championship has just revealed its calendar for 2019, including its first live event in Tokyo, Japan, scheduled for 31 March 2019.
South Korean Customs looking into Korean Air 'nut rage' family
South Korea's Customs is looking into accusations that the family helming Korean Air did not pay customs duties on luxury goods brought into the country.
Kim Jong-un invites South Korean president for summit - South Korea
The invitation sets the stage for the first meeting of Korean leaders in more than 10 years.
Pembunuhan Jong Nam: Polis serah Ri Jong Chol kepada imigresen esok
Lelaki warga Korea Utara yang ditahan polis berhubung kes pembunuhan seorang rakyat negara itu pada 13 Feb lepas, akan diserah kepada Jabatan Imigresen esok.
Korean Air tolak dakwaan 'kru tidak terlatih' oleh penyanyi Richard Marx
Syarikat penerbangan ternama Korea Selatan, Korean Air berkata bahawa anak-anak kapalnya mengikut prosedur syarikat dalam mengawal penumpang selepas bintang 80-an Richard Marx memuat naik status.