Yield Curves May Steepen Further in Key Southeast Asian Markets

Yield gaps between short- and long-dated bonds in several Southeast Asian countries may widen further as elevated oil prices add inflationary pressure and worsen fiscal strains. The article points to higher borrowing-risk premiums for local sovereign debt, with the impact most relevant for emerging-market bond markets and duration positioning.

Analysis

Yield gaps between short- and long-dated bonds in several Southeast Asian countries may widen further as elevated oil prices add inflationary pressure and worsen fiscal strains. The article points to higher borrowing-risk premiums for local sovereign debt, with the impact most relevant for emerging-market bond markets and duration positioning.