The Manila-based Asian Development Bank said Wednesday the novel coronavirus (COVID-19) pandemic and deepening global economic uncertainty are weighing heavily on local currency bond markets of emerging East Asian economies, including the Philippines.
In the latest issue of ADB’s Asia Bond Monitor, ADB chief economist Yasuyuki Sawada said financial markets in the region were already feeling the brunt of the effects of the COVID-19 pandemic, with foreign investment and sector activities on the downside, coupled with ongoing trade issues.
“Efforts to cushion the negative impacts of the pandemic through stimulus packages and monetary measures to support affected households, businesses, and financial markets should continue,” Sawada said.
Emerging East Asia comprises China, Hong Kong, Indonesia, South Korea, Malaysi, the Philippines, Singapore, Thailand and Vietnam.
Sawada said apart from emerging East Asia, government bond yields also declined in major advanced economies and select European markets between Dec. 31, 2019 and Feb. 29, 2020.