Robin Marshall, M.A., M.Phil
Head of FICC Research
Monthly report
Malaysia outperforms as intra-region spreads widen
Key highlights:
- Malaysia government bonds outperform within region, and globally, helped by lower energy exposure, stable inflation, carry and roll-down the curve
- Thailand’s deflationary strains reflect legacy of Covid; low growth trap leaves concerns about debt issuance
- Spreads widen between low and high yielders, as Philippines and Indonesia raise rates to protect low inflation regimes, driving some bear flattening of curves
- Indian yields fell versus other high yielders, as the RBI faces a different set of problems with less stagflation; signs that 7% Indian government bond yields are drawing investor support
- Global government bond returns show evidence of structural shifts in some correlations with US Treasuries, notably Korea in APAC region
Published monthly by FTSE Russell FICC Research, this report:
- Covers key developments in government bond markets across India, Indonesia, Malaysia, the Philippines and Thailand
- Assesses macroeconomic and policy developments in each country and globally, and their implications for local bond markets
- Includes analysis of yield curve movements and spreads
- Presents performance returns and yield movements using FTSE Russell index data and Lipper fund flow data
- Features a rotating monthly spotlight on one of the five economies
