Graphic: Foreign flows into Asian bonds
Indonesian bonds attracted inflows for the first time in three months, bagging $914 million, as its factory activity accelerated last month.
South Korean bonds received $3 billion worth of inflows last month, while Malaysian and Thai bonds got $1.5 billion and $926 million respectively.
Cross-border investors sold a net $18 million worth of Indian bonds last month, marking a fourth straight month of outflows, with the country grappling with a surge in coronavirus infections and deaths.
Most analysts said the outlook for bond inflows would hinge on the pace of vaccine distribution and how fast the region recovers from the pandemic.
"Total returns for local currency govvies are getting smaller as investors ponder two risks - a resurgence of COVID-19 in Asia and the prospect of elevated inflation in the United States," said Eugene Leow, strategist at DBS Bank said in a report.
"Without a high enough proportion of the population vaccinated, there will also always be risks of another COVID-19 wave."
Graphic: Change in 10 yr government bond yields
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy; Editing by Rashmi Aich and Uttaresh.V)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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