Asian bonds see higher overseas investments in June

Wednesday, 17 July 2019 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Foreign investors stepped up their purchases in Asian bonds in June as a thaw in long-running Sino-US trade dispute and falling global interest rates bolstered the appetite for regional bonds.

Last month, foreigners bought a net $ 12.36 billion of Asian bonds – their biggest net purchase in at least six years – data from regional banks and bond market associations in Malaysia, Thailand, Indonesia, South Korea and India showed.

South Korean bonds attracted over $ 5 billion worth of foreign money for a second consecutive month in June on rising expectations that its central bank will cut interest rates to boost its faltering economic growth.

The South Korean central bank had raised its interest rates in November, pressured by aggressive rate hikes by the US Federal Reserve at the time.

High yielders such as India and Indonesian bonds also received solid inflows as the US Treasury yields last month dropped to their lowest in more than two-and-a-half years, spurring the borrow-low, invest-high carry trades.

Thai and Malaysian bonds also witnessed over $ 1.5 billion worth of foreign inflows each, last month.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.