Asia’s government bonds may be poised to benefit from low debt levels and expanding economies, in contrast to developed nations whose weaknesses have been exposed by the Greek debt crisis, according to Standard & Poor’s.
China will allow international organizations such as the World Bank and Asian Development Bank to send proceeds from yuan bond sales home to encourage bond market development, the People’s Bank of China said .
South Korean and Malaysian bonds offer a “safe haven” as concern Greece’s debt crisis will spread erodes demand for riskier assets, according to DBS Asset Management Ltd., a unit of Southeast Asia’s largest lender.
China’s bond-market regulator said a new credit-rating agency it is establishing needs to be funded by investors rather than issuers to avoid conflicts of interest that erode confidence in existing assessments.
China unexpectedly raised its benchmark lending and deposit rates for the first time since 2007 ahead of data that may show inflation accelerated to the fastest pace in almost two years. Stocks and commodities fell.