A monthly review and outlook of the Asian Quality Bond market.

Key highlights - as at May 2016


  • Despite a more hawkish US Fed, softer China data and a looming Brexit vote, Asian credit market managed to eke out a 5th consecutive month of positive return.
  • The People’s Bank of China left monetary policy unchanged with no rate cuts or easing in the reserve requirement ratio.
  • The Federal Open Market Committee (FOMC) chair Janet Yellen herself took a less dovish tone when speaking at the end of the month, noting that a rate hike in “coming months” would be appropriate if the economy continues to strengthen.
  • We continue to keep a close eye on various reforms being rolled out especially those targeting an improvement in productivity as this is crucial in eventually driving growth in the longer term.
  • Asian credits are looking fair at this juncture factoring the numerous headline risks we could be facing in the months ahead.



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