Asia Bond Monitor – June 2021

This edition notes mixed local currency government bond yield movements in emerging East Asia. It covers green sukuk (Islamic bonds), ASEAN+3 sustainable bonds, fintech for sustainable investments, and governing sustainable finance.

Local currency bonds outstanding in emerging East Asia rose to USD20.3 trillion at the end of March 2021, but the overall growth of the bond market moderated somewhat in quarter one. Local currency government bond yield movements were mixed as the resurgence of coronavirus disease (COVID-19) cases and global inflation fears had varied effects on individual markets. Investor sentiment remained subdued amid the uncertainties.