Reported about 2 months ago
Emerging Asian bonds, particularly Malaysian debt, are experiencing a resurgence in sensitivity to US Treasury yields, reaching correlations close to their 2024 peak. With Malaysian bonds showing a correlation of 0.53, they are expected to outperform their regional peers as expectations for Federal Reserve interest rate cuts grow. This trend has attracted significant foreign investment, pushing Malaysian bond returns to 8.3% for dollar-based investors this year, marking them as the top performers in the region.
Source: YAHOO