Asia Bond Monitor - November 2024

This edition reviews recent financial conditions and bond market developments in emerging East Asia, provides updates on policies and regulations, and discusses digital green bonds.

Financial conditions in emerging East Asia weakened slightly from 2 September to 31 October 2024 amid heightened uncertainties around the Federal Reserve's future monetary policy path and elections in the United States. In most regional markets, short-term sovereign bond yields declined following domestic policy rate cuts, while 10-year sovereign bond yields rose, tracking 10-year yield movements in the United States. Local currency bonds outstanding in emerging East Asian markets totaled USD26.8 trillion at the end of September, while sustainable bonds outstanding in ASEAN+3 markets posted strong growth of 4.1% quarter-on-quarter in the third quarter to reach USD893.1 billion. This edition of the Asia Bond Monitor includes a discussion of how digital green bonds, which feature efficient monitoring and enhanced transparency, can help scale up sustainable finance and mitigate greenwashing risk.