Asia Bond Monitor – November 2023

ASIABONDMONITOR NOVEMBER2023 ASIANDEVELOPMENTBANK TheAsiaBondMonitor(ABM)ispartoftheAsianBondMarketsInitiative,anASEAN+3initiativesupportedbytheAsianDevelopmentBank(ADB).ThisreportispartoftheimplementationofatechnicalassistanceprojectfundedbytheInvestmentClimateFacilitationFundoftheGovernmentofJapanundertheRegionalCooperationandIntegrationFinancingPartnershipFacility. ContributionsfromSayuriShirai(advisor)attheAsianDevelopmentBankInstitute,(professor)attheKeioUniversity,and(formerpolicyboardmember)at theBankofJapan;andSei-WanKim(professor)attheDepartmentofEconomicsofEwhaWomen’sUniversityaregratefullyacknowledged. ThiseditionoftheABMwaspreparedbyateamfromtheEconomicResearchandDevelopmentImpactDepartmentheadedbyAlbertParkandsupervisedbyAbdulAbiad,directoroftheMacroeconomicsResearchDivision.TheproductionoftheABMwas ledbyShuTianandDonghyunPark,andsupportedbytheAsianBondsOnlineteam.TheAsianBondsOnlineteammembersincludeAngelicaAndreaCruz,DebbieGundaya,JeremyGraceIlustrisimo,RussJasonLo,PatrickVincentLubenia,ResiOlivares,andRoselynRegalado.MaiLinVillaruelprovidedoperationalsupport,KevinDonahueprovidededitorialassistance,PrincipeNicdaodidthetypesettingandlayout,andCarloMonteverdeandEricksonMercadoprovidedwebsitesupport. Howtoreachus: AsianDevelopmentBank EconomicResearchandDevelopmentImpactDepartment6ADBAvenue,MandaluyongCity 1550MetroManila,PhilippinesTel+63286326545 E-mail:asianbonds_feedback@adb.org DownloadtheABMathttp://asianbondsonline.adb.org/documents/abm_nov_2023.pdf. TheAsiaBondMonitorNovember2023waspreparedbyADB’sEconomicResearchandDevelopmentImpactDepartmentanddoesnotnecessarilyreflecttheviewsoftheADBBoardofGovernorsorthegovernmentstheyrepresent. ASIABONDMONITOR NOVEMBER2023 ASIANDEVELOPMENTBANK CreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO) ©2023AsianDevelopmentBank 6ADBAvenue,MandaluyongCity,1550MetroManila,PhilippinesTel+63286324444;Fax+63286362444 www.adb.org Somerightsreserved.Publishedin2023. ISBN978-92-9270-470-4(print);978-92-9270-471-1(electronic);978-92-9270-472-8(ebook) ISSN2219-1518(print),2219-1526(electronic)PublicationStockNo.TCS230534-2 DOI:http://dx.doi.org/10.22617/TCS230534-2 TheviewsexpressedinthispublicationarethoseoftheauthorsanddonotnecessarilyreflecttheviewsandpoliciesoftheAsianDevelopmentBank(ADB)oritsBoardofGovernorsorthegovernmentstheyrepresent. ADBdoesnotguaranteetheaccuracyofthedataincludedinthispublicationandacceptsnoresponsibilityforanyconsequenceoftheiruse.ThementionofspecificcompaniesorproductsofmanufacturersdoesnotimplythattheyareendorsedorrecommendedbyADBinpreferencetoothersofasimilarnaturethatarenotmentioned. Bymakinganydesignationoforreferencetoaparticularterritoryorgeographicarea,orbyusingtheterm“country”inthispublication,ADBdoesnotintendtomakeanyjudgmentsastothelegalorotherstatusofanyterritoryorarea. ThispublicationisavailableundertheCreativeCommonsAttribution3.0IGOlicense(CCBY3.0IGO)https://creativecommons.org/licenses/by/3.0/igo/.Byusingthecontentofthispublication,youagreetobeboundbythetermsofthislicense.Forattribution,translations,adaptations,andpermissions,pleasereadtheprovisionsandtermsofuseathttps://www.adb.org/terms-use#openaccess. ThisCClicensedoesnotapplytonon-ADBcopyrightmaterialsinthispublication.Ifthematerialisattributedtoanothersource,pleasecontactthecopyrightownerorpublisherofthatsourceforpermissiontoreproduceit.ADBcannotbeheldliableforanyclaimsthatariseasaresultofyouruseofthematerial. Pleasecontactpubsmarketing@adb.orgifyouhavequestionsorcommentswithrespecttocontent,orifyouwishtoobtaincopyrightpermissionforyourintendedusethatdoesnotfallwithintheseterms,orforpermissiontousetheADBlogo. CorrigendatoADBpublicationsmaybefoundathttp://www.adb.org/publications/corrigenda.Note: ADBrecognizes“China”asthePeople’sRepublicofChina;“HongKong”asHongKong,China;“Korea”as theRepublicofKorea;“Vietnam”asVietNam;and“Russia”astheRussianFederation.CoverdesignbyEricksonMercado. Contents EmergingEastAsianLocalCurrencyBondMarkets:ARegionalUpdate ExecutiveSummaryvi DevelopmentsinRegionalFinancialConditions1 BondMarketDevelopmentsintheThirdQuarterof202313 RecentDevelopmentsinASEAN+3SustainableBondMarkets22 PolicyandRegulatoryDevelopments25 HowDoesInflationinAdvancedEconomiesAffectEmergingMarketBondYields?28 MarketSummaries China,People’sRepublicof31 HongKong,China33 Indonesia35 Korea,Republicof37 Malaysia39 Philippines41 Singapore43 Thailand45 VietNam47 EmergingEastAsianLocalCurrencyBondMarkets: ARegionalUpdate ExecutiveSummary RecentDevelopmentsinFinancialConditionsinEmergingEastAsia Duringthereviewperiodfrom1Septemberto 10November,financialconditionsweakenedacrossemergingEastAsiaonexpectationsthattheUnitedStates(US)FederalReservewouldkeepinterestrateselevatedforanextendedperiod.1Thisprospectdroveboth USdollarappreciationandcapitaloutflowsfromemergingmarkets.Topreventinflationarypressureandsafeguardfinancialstability,someregionalcentralbanksrecentlyresumedhikingpolicyrates,includingBankIndonesia, theBangkoSentralngPilipinas,andtheBankofThailand.Acrossemerging