Asia bonds: Diverging risks and safe haven flows – DBS

DBS Group Research economists analyses Asia’s bond markets under the current geopolitical shock. The note says India and Indonesia have seen yields rise but less dramatically than Western peers, while South Korea faces greater volatility. It argues China’s bonds remain well supported thanks to multiple buffers, and Singapore continues to attract safe haven flows despite a likely yield bottom.

China insulated as Singapore draws flows

"Asia’s bond markets are also on the move, although the action has been differentiated, demonstrating varying degrees of vulnerability."

"High yielders like India and Indonesia have seen their bond yields climb, but nothing as dramatic as their Western counterparts have demonstrated."

"South Korea’s bond yields reflect relatively greater stress and volatility."

"China, despite being a major importer of fuel from the Middle East, is characterised by several layers of insulation."

"As for Singapore, yields may have bottomed, but safe haven flows will likely continue."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)