The prospect of the Federal Reserve’s much-anticipated taper is hurting Asian bond markets, a report from Asian Development Bank has found.
According to the report, local bond markets in Asia are still expanding, but at a more modest pace, as a direct result of investors being more cautious amid greater volatility and weaker growth in the region.
Emerging markets have taken a battering in recent months as fears of a reduction in the Fed’s $85-billion-a-month bond buying program prompted sharp capital flows from the region.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.