What global investors can look forward to in Asian bond markets through 2018

Trade war remains a risk

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Ooi Boon Peng of Eastspring Investments
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Ooi Boon Peng of Eastspring Investments

In 2017, Asia benefitted from a synchronised global growth recovery and a "Goldilocks" environment, where above-trend growth was accompanied by benign inflation.

Global stock market volatility fell to historical lows, and measures of consumer and business confidence in the US and other major developed markets improved markedly over the year. Asian bond markets have fared well in this environment with the Asian local currency and USD bonds rising by 11% and 6%  respectively in USD terms. Performance for equity and credit markets thus far in 2018 is certainly a contrast from the positive and well-behaved price movements in 2017.  With the US Federal Reserve likely to stay the course for three-to-four rate hikes this year and Sino-US trade ten...

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