Asian Bonds Outflow Slowing

Bond funds across emerging markets have had a tough year of punishing outflows, but the tide out of Asian bonds may be slowing, Cecilia Chan, HSBC’s chief investment officer for fixed income in Asia, told CNBC.

Since the U.S. Federal Reserve indicated in May that it was considering tapering its asset purchase program, funds have flowed out of emerging markets, with expectations of rising interest rates adding an extra sting for bonds.

Flows out of emerging Asia bonds peaked in July and have since eased somewhat, although $319 million exited in the week ending November 27, up from a $263 million outflow in the previous week, according to data from ANZ.


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