Foreign investors bought $214 B in Asian bonds in October

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Foreign investors bought $214 B in Asian bonds in October

The U.S. dollars and other world currencies are in a charity receptacle at Pearson International Airport in Toronto

In October, Asian bonds received the lowest foreign inflow this year, which was hit by concerns over higher inflation levels and a slowdown in China's economy.

The overseas investors purchased a combined net total of $2.25 billion in Indonesian, Malaysian, South Korean, Thai and Indian bonds last month, the smallest buying since December 2020, according to regulatory authorities and bond market associations.

In October, sentiments towards Emerging Asia bonds were sharply decreased due to the upward shock to global short-term rates, said Duncan Tan, a strategist at DBS Bank.

Foreign investors were worried about the negative impact of rising energy prices and weaker China growth on the broader Asia outlook. Foreign 20 flows 20 into 20 Asian 20 bonds.

The inflows worth $214 billion were about half of what they collected in September, which was about half of the inflows in South Korean bonds.

The data showed that the bonds of South Korean have secured a net $49.5 billion so far this year, which accounts for over 85% of the money received by the five major markets in the region.

Malaysian bonds attracted $711. million, making a third straight month of inflow, due to higher oil prices and hopes that easing coronaviruses would help the economy in the fourth quarter.

The bonds in Thailand received a net $480 million boost, as well as improved economic activity and a re-opening in the travel sector.

In the other hand, Indonesia and Indian bonds, which offer the highest yields in the region, witnessed outflows last month.

The Fed announced last week that it would reduce its bond buying by $15 billion every month from November, leaving open the option to slow or slow the pace as needed.

The U.S. Federal Reserve has started to taper their bond purchases, and market expectations have shifted towards rate hikes in the second half of 2022, said Khoon Goh, head of Asia Research at ANZ Bank.

There will be a shift in market pricing towards earlier rate hikes which will cause market volatility, which will affect portfolio flows in Asia. Foreign investors have holdings in Asian bonds, http: tmsnrt.rs 3 kvN 8 Sq