Policy credibility and deepening capital markets are transforming Asian fixed income from a tactical play into a strategic allocation, even as managers debate whether the region can compete on yield with other emerging markets.
Asian emerging market local bonds offer lower yields than Latin American or Eastern European peers, but the region's stability, reforms and shock resilience are boosting its appeal for global investors.
Asian USD bonds have consistently shown lower volatility than global peers, a resilience supported by sovereign anchors, domestic investor bases, shorter duration profiles and growing intra‑regional linkages.
Global investors are reassessing their reliance on dollar-denominated assets as fiscal strains, tariffs and political uncertainty weigh on the currency, with Asian bonds emerging as a structural alternative.