FTSE Asia Pacific Liquid Government Bond Index Series

FTSE Russell is dedicated to driving market innovation and has been collaborating closely with key industry partners to support the interest rate risk transfer solutions across the Asian markets.

By focusing on liquidity and standardisation, the FTSE Asia Pacific Liquid Government Bond Index Series enables market participants to better track performance, manage risk, and access new opportunities in Asia’s fast-growing fixed income markets.

The FTSE Asia Pacific Liquid Government Bond Index Series provides the foundation for the fixed income derivatives product, supporting a wide range of applications, including:

Risk Management & Hedging: Efficiently hedge interest rate risk, adjust duration exposure, and respond to market dynamics.
Trading & Strategy Execution: Implement directional rate views, yield curve strategies, relative value positions, basis trades, and arbitrage opportunities with precision.
Allocation & Targeted Exposure: Access specific curve segments and targeted countries quickly and seamlessly, with minimal friction.

The FTSE Asia Pacific Liquid Government Bond Index Series is selected by the Singapore Exchange as the foundation for an interest rate derivative product . This innovative solution provides market participants a powerful tool to manage interest rate exposure, hedge risk, and implement strategic investment views.

Singapore Exchange selected the FTSE Asia Pacific Liquid Government Bond Index Series to support the launch of its innovative interest rate derivatives contract, enabling investors to manage rate exposure, hedge risks, and implement strategic views.

The FTSE Asia Pacific Liquid Government Bond Index Series comprise of a series of benchmarks which are designed to track recently issued or reopened government bonds within each tenor and country, selected from the universe of the FTSE Asia Pacific Government Bond Index.

The sector groups are categorized by the following:

Remaining term: 3-year tenor, 5-year tenor, and 10-year tenor
Country: India, Thailand, Indonesia, Malaysia, and Philippines

Country	3-year tenor	5-year tenor	10-year tenor	# of bonds to be selected in each sector group at most
Remaining term*
India **	2-4 years	4-8 years	8-11 years	3
Thailand	2-4 years	4-6 years	8-11 years	2
Indonesia	2-4 years	4-7 years	7-11 years	3
Malaysia	2-4 years	4-6 years	8-11 years	2
Philippines	2-4 years	4-7 years	8-11 years	3

* Remaining term on the fixing date

** Fully Accessible Route (FAR) Indian government bonds only

The construction of the FTSE Asia Pacific Liquid Government Bond Index Series involves the following stages:

Base Universe	FTSE Asia Pacific Government Bond Index
Liquidity screening and selection	Exclude non-conventional bonds (green bonds, social bonds, sustainability bonds, special bonds, retail bonds, saving bonds, and sukuk bonds) Bucket bonds by country and remaining term into sector groups Select a number of most recently issued or reopened bonds within each sector group
Weighting	Bonds are equally weighted within each sector group