asian bonds - weekly debt highlights

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17 October 2011 asianbondsonline.adb.org

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Key Developments in Asian Local Currency Markets

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ast week the Philippines accepted a total of US$1.3 billion in a buyback of EUR- and US$-denominated bonds.In line with the buyback exercise, the government raised US$50 million through the reopening of its bondsmaturing on 23 October 2034 with a coupon of 6.375%. The Bureau of the Treasury also launched its secondretail treasury bond offering of the year. On the corporate front, Banco De Oro Unibank Inc. issued PHP6.5

billion worth of unsecured subordinated notes that qualify as Tier 2 capital. Finally, in response to the weakening globaleconomy the Philippine government unveiled a PHP72.1 billion fiscal stimulus package to boost the country's growththrough the first half of 2012.

In the People's Republic of China (PRC),the Ministry of Railways sold CNY10 billionworth of 5-year bonds and CNY10 billion worthof 20-year bonds. These bonds qualify for the50% reduction in the tax on interest income asrecently announced by the NationalDevelopment Reform Council. The Export-

Import Bank of Korea issued KRW170 billionworth of 1-year zero-coupon bonds andShinhan Bank issued KRW100 billion of 2-yearbonds. In Malaysia, Kuala Lumpur Kepong soldMYR300 million worth of 5-year Islamic bonds,while TRIplc issued MYR240 million worth ofmedium-term notes in several tranches thatwere guaranteed by Danajamin Nasional.

Bank Indonesia's Board of Governors cutthe benchmark rate by 25 basis points to 6.50%in its meeting on 11 October. The Bank ofKorea's Monetary Policy Committee decided tomaintain its 7-day repurchase rate at 3.25% in

its meeting on 13 October. The MonetaryAuthority of Singapore announced that it willcontinue with a policy of modest and gradualappreciation of the Singapore dollar, but willreduce the slope of the policy band to theprevailing level of the nominal effectiveexchange rate.

Inflation in the PRC fell in September to6.1% year-on-year (y-o-y) from 6.2% in August.Growth in the PRC's producer price index alsoeased to 6.5% y-o-y from 7.3% in August.

Singapore's economy expanded 5.9% y-o-y

in 3Q11, according to advance estimatesreleased last week by the Ministry of Trade andIndustry. Meanwhile, Malaysia's industrialproduction index rose 3.0% y-o-y in Augustfollowing a revised 0.5% y-o-y decline in July.Also, manufacturing sales posted 10.8% y-o-ygrowth in August compared with revised 9.5%growth in July.

The PRC posted a trade surplus of US$14.5 billion in September,the smallest since May, due to weakening demand from developedeconomies. Export growth fell to 17.1% y-o-y in September from24.5% in August. In the Philippines, exports fell 15.1% y-o-y to US$4.1billion in August, the steepest decline since September 2009.

The M3 money supply in the Philippines grew 9.4% y-o-y toPHP4.3 trillion in August. Liquidity was fueled by the expansion of netforeign assets at a pace of 21.7% y-o-y on sustained inflows fromoverseas Filipino remittances and portfolio and direct investments.

Government bond yields fell for all tenors in Indonesia and formost tenors in the PRC, the Republic of Korea, Malaysia, thePhilippines, Singapore, Thailand, and Viet Nam. The yield spreadbetween the 2-year and 10-year maturities narrowed for mostemerging East Asian markets while it widened for Hong Kong, China;Malaysia, and Thailand.

L Asia Bond Monitor September 2011

10-Year Selected LCY Government Security Yields Close of 14 October 2011

basis point change from

Previous Day* Markets Latest Closing Previous Week* 1-Jan-11*

US 2.25 6.43 17.13 -104.58

EU 2.20 9.40 19.70 -76.40Japan 1.02 -0.40 3.10 -10.90

PRC 3.78 -1.00 -15.00 -13.00

Hong Kong, China 1.33 -3.50 7.50 -153.10

India 8.79 6.60 21.20 87.10

Indones ia 6.35 -5.80 -51.70 -125.40

Malays ia 3.69 0.00 0.30 -34.50

Korea, Rep. of 3.77 -1.00 -6.00 -75.00

Philippines 5.77 -0.63 -12.60 -12.04

Singapore 1.62 -1.00 -1.00 -109.00

Thailand 3.49 2.70 -7.10 -23.80

Viet Nam 12.55 5.00 -9.30 80.00

17.13

19.70

3.10

-15.00

7.50

21.20

-51.70

0.30

-6.00

-12.60

-1.00

-7.10

-9.30

Selected

Benchmark Yield Curves - Local Currency Government Bonds

Policy Rate versus Inflation Rate Charts

Government Security Yields

Credit Default Swap Spreads & Exchange Rate Indexes

Selected Debt Security Issuances Selected Asia Data Releases

2-versus-10 Yield Spread Chart

http://asianbondsonline.adb.org/documents/abm_sep_2011.pdf?src=wdh

http://asianbondsonline.adb.org/documents/abm_sep_2011.pdf?src=wdh



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EBT HIGHLIGHTS ASIANBONDSONLINE

Summary Text of News Articles

Philippines Accepts US$1.3 billion in Bond Buyback, Launches Retail Treasury Bond;

Banco de Oro Issues PHP6.5 billion of Unsecured Subordinated Notes;

Philippine Government Announces PHP72 billion Fiscal Stimulus Package to Boost Growth.......................................................................................................................The Philippine government accepted a total of US$1.3 billion in a buyback of outstanding EUR- and US$-denominatedbonds last week. The government aims to convert its foreign currency (FCY) obligations to local currency (LCY) bondsas part of its debt liability management efforts. The government has a total of US$17.5 billion of outstanding FCY-denominated bonds eligible for repurchase. In line with the buyback exercise, the government raised US$50 millionthrough a reopening of its bonds maturing on 23 October 2034 with a coupon of 6.375% per annum. The bonds weresold at a price of 117.5 to yield at 5.077%. The proceeds from the sale will be used to partially fund the repurchase ofeligible bonds under the buyback program.

The Bureau of the Treasury launched its second retail treasury bond (RTB) offering for the year. The price-settingauction was held on 10 October with 10-year RTBs at 5.75% per annum and 15-year RTBs at 6.25%. The governmentmay sell as much as PHP250 billion worth of RTBs, including PHP10 billion for state-owned corporations, and has set adaily cap of PHP40 billion throughout the 6-day offer period lasting until 17 October. The RTBs pay a quarterly coupon

and will be issued at par on 20 October.Banco De Oro Unibank Inc. (BDO) successfully issued PHP6.5 billion worth of unsecured subordinated notes thatqualify as Tier 2 capital. The notes were priced at 6.375 % per annum and have a maturity of 10 years and 3 monthsfrom issue date. The Tier 2 notes have a call option exercisable by the Bank after 5 years and 1 day, subject to priorapproval by Bangko Sentral ng Pilipinas (BSP). Deutsche Bank AG (Manila) and HSBC acted as joint lead arrangersand selling agents for the transaction. Standard Chartered Bank, BDO Private Bank Inc., and Multinational InvestmentBancorporation were the selling agents for the issue.

Philippine President Aquino unveiled a PHP72.1 billion fiscal stimulus package in response to weakening globaleconomy to boost the country's growth through the first half of 2012. Of the total amount, PHP37.9 billion will bereleased to national government agencies, PHP7.3 billion to local government units, and PHP26.9 billion to state-ownedcorporations. Public works and poverty reduction projects in the package include the rehabilitation of roads and bridgesdamaged by recent typhoons, funding for the peace process in the southern Philippines, and the resettlement of

informal settlers.

PRC's Ministry of Railways Sells 5- and 20-Year Bonds;

ICBC, Citic Bank, and China Construction Bank Issues Certificate of Deposits in Hong Kong, China;

LCY Bond Issuance in the Republic of Korea and Malaysia.......................................................................................................................The Ministry of Railways in the People's Republic of China (PRC) sold CNY10 billion worth of 5-year bonds with acoupon of 5.59% and CNY10 billion worth of 20-year bonds with a coupon of 6.0%. The bonds were sold at 30-45 basispoints below the current yield on Ministry of Railway bonds traded on the secondary market. The National DevelopmentReform Council (NDRC) recently announced that bonds issued by the Ministry of Railways between 2011 and 2013would have a 50% reduction in the tax on interest income. The NDRC also issued a letter clarifying that the Ministry ofRailway issuance enjoys a government-guarantee.

In Hong Kong, China, Industrial and Commercial Bank of China (ICBC) issued CNH125.5 million in certificates of

deposit (CDs) at a coupon rate of 1.57%. Citic Bank International and China Construction Bank, respectively, issuedCDs amounting to HKD100 million with a 2.0% coupon rate and HKD109 million with a 1.6% coupon rate. All threeissues carried a maturity of 1 year.

The Export -Import Bank of Korea issued KRW170 billion worth of 1-year zero-coupon bonds. The bonds were priced toyield 3.46%. Korea Electric Power issued KRW150 billion worth of 5-year bonds with a coupon of 4.08% and LG U+, atelecom company under the LG Group, issued KRW150 billion worth of 30-year bonds at a coupon of 4.24%. ShinhanBank issued KRW100 billion worth of 2-year bonds with a coupon of 3.84%.

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asianbondsonline.adb.org EBT HIGHLIGHTS ASIANBONDSONLINE


PRC's Ministry of Railways Sells 5- and 20-Year Bonds;

ICBC, Citic Bank, and China Construction Bank Issues Certificate of Deposits in Hong Kong, China;

LCY Bond Issuance in the Republic of Korea and Malaysia (cont…).......................................................................................................................In Malaysia palm oil producer Kuala Lumpur Kepong sold MYR300 million worth of 5-year Islamic bonds last week. Theissuance was priced at 3.88% and rated AA1 by RAM Ratings. Meanwhile, TRIplc issued MYR240 million worth ofmedium-term notes in several tranches that were backed by Malaysia's bond guarantee agency Danajamin Nasional.The notes were issued with 5-, 6-, 7-, 8-, 9-, 10- and 15-year maturities at MYR20 million each, and 11-, 12- 13- and 14-year maturities at MYR25 million each. All notes were rated AAA(fg) due to the Danajamin guarantee. It was the firsttime that Danajamin guaranteed a bond issue that funds a privately financed initiative, with proceeds from the issuanceto be used to partially finance the second phase of construction of Universiti Teknologi MARA's Puncak Alam Campusacademic facilities and infrastructure.

Bank Indonesia Cuts Benchmark Rate 25 bps to 6.50%;

Bank of Korea Holds 7-Day Repurchase Rate Steady at 3.25%;

MAS to Continue Policy of Modest and Gradual Appreciation of the Singapore Dollar .......................................................................................................................In its meeting on 11 October, Bank Indonesia's Board of Governor's cut its benchmark rate 25 basis points (bps) to6.5%. The rate cut reversed a 25 bps hike in February and brought the benchmark rate back to a record low level. Thedecision was taken given the Board's confidence that inflation will remain below 5% in 2011 and 2012.

The Monetary Policy Committee of The Bank of Korea decided last week to leave its policy rate unchanged at 3.25%.The committee cited as key reasons for its decision continued growth in the Korean economy, albeit with potential risksfrom the current weakness in developed economies, and expectations that the future pace of inflation would bemoderate.

In its latest policy statement, the Monetary Authority of Singapore (MAS) announced that it will continue a policy ofmodest and gradual appreciation of the Singapore dollar, but will reduce the slope of the policy band to the prevailinglevel of the nominal effective exchange rate. However, there will be no changes in the width of the policy band and thelevel at which it is centered.

For policy rate trends in Indonesia, refer to this link:http://asianbondsonline.adb.org/indonesia/data/marketwatch.php?code=policy_rate_and_inflation_trends

For policy rate trends in the Republic of Korea, refer to this link:http://asianbondsonline.adb.org/korea/data/marketwatch.php?code=policy_rate_and_inflation_trends

Singapore's Advance GDP Estimate for 3Q11 is 5.9%;

Industrial Production and Manufacturing Sales in Malaysia Rise in August .......................................................................................................................According to the advance estimate released last week by the Ministry of Trade and Industry (MTI), Singapore'seconomy expanded 5.9% y-o-y in 3Q11, an improvement over the 1.0% growth posted in 2Q11. The higher growth in3Q11 was due to a turnaround in the manufacturing sector driven by biomedical manufacturing. In 3Q11, themanufacturing sector expanded 13.2% y-o-y after contracting 5.8% in the previous quarter. The construction sector

posted marginal growth of 0.4% during the period. Meanwhile, the services sector registered 3.6% y-o-y growth in3Q11, slightly lower than the 4.0% growth in 2Q11. MTI expects gross domestic product (GDP) growth of about 5.0%for the full-year 2011.

Malaysia's industrial production index (IPI) rose 3.0% y-o-y in August, an improvement from the revised 0.5% decline inJuly. The manufacturing and electricity indices increased 4.8% and 1.4% y-o-y, respectively, while the mining indexdropped 1.4%. Meanwhile, manufacturing sales increased 10.8% y-o-y in August, up slightly from a revised 9.5%growth rate in July. On a month-on-month (m-o-m) basis, manufacturing sales rose 0.2% in August.

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http://asianbondsonline.adb.org/indonesia/data/marketwatch.php?code=policy_rate_and_inflation_trends&src=wdh


http://asianbondsonline.adb.org/korea/data/marketwatch.php?code=policy_rate_and_inflation_trends&src=wdh

http://asianbondsonline.adb.org/korea/data/marketwatch.php?code=policy_rate_and_inflation_trends&src=wdh




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asianbondsonline.adb.org EBT HIGHLIGHTS ASIANBONDSONLINE

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PRC Posts Trade Surplus of US$14.5 Billion in September;

Export Growth in the Philippines Falls 15.1% in August

.......................................................................................................................The PRC posted a trade surplus of US$14.5 billion in September, the smallest since May, due to weakening demandfrom developed economies. Export growth fell to 17.1% y-o-y in September from 24.5% in August, led by a decline inthe growth of exports to Europe from 22.0% to 9.8%. Meanwhile, imports grew 20.9% y-o-y in September.

In the Philippines, exports fell 15.1% y-o-y to US$4.1 billion in August, the steepest decline since September 2009. Ona m-o-m basis, exports fell 8.5%. Total receipts from merchandise exports in January-August grew 0.7% y-o-y to reachUS$33.2 billion. Electronic products, which accounted for 51.2% of total export revenue during the period, posted a30.6% y-o-y decline to US$2.1 billion. The export of manufactured goods, which comprised about 84% of total receiptsin August, decreased 18.3% y-o-y to US$3.4 billion. Japan was the top export destination, comprising 16.1% of totalexports and generating a 7.3% y-o-y increase in export receipts. The Philippines' other top export destinations-theUnited States (US); PRC; Singapore; and Hong Kong, China-all recorded lower revenue in August.

M3 Money Supply in the Philippines Expands 9.3% in August

.......................................................................................................................The Philippines' M3 money supply (domestic liquidity) expanded 9.4% y-o-y to PHP4.3 trillion in August based on areport from the Bangko Sentral ng Pilipinas (BSP). Liquidity was fueled by the expansion of net foreign assets at 21.7%y-o-y on sustained inflows from overseas Filipino remittances and portfolio and direct investments. Net inflows fromforeign direct investment fell to US$26 million in July, which was a 9-month low. Net foreign portfolio inflows stood atUS$150 million in September, down 69.7% y-o-y and 62.0% m-o-m. Concerns over Europe's debt crisis and a slowingUS recovery weighed on investor sentiment.



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asianbondsonline.adb.org DEBT HIGHLIGHTS ASIANBONDSONLINE

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Tip: Zoom-in on the table using the Acrobat zoom tool

Selected Government Security Yields

3-Month Selected LCY Government Security Yields

Close of 14 October 2011

Previous

Day*

Previous

Week*1-Jan-11*

US 0.01 -0.51 0.50 -10.96

EU 0.40 0.40 -9.30 0.80

Japan 0.10 0.00 0.00 -2.40

PRC 3.17 -6.00 -27.00 -1.00

Hong Kong, China 0.10 0.00 1.00 -18.00

India 8.47 -1.00 5.00 137.00

Malaysia 2.98 -0.20 -3.00 20.00Korea, Rep. of 3.30 0.00 0.00 79.00

Philippines 2.60 0.00 -10.00 140.50

Singapore 0.23 -1.00 1.00 -16.00

Thailand 3.45 0.54 -2.46 147.71

basis point change fromLatest

ClosingMarkets

0.50

-9.30

0.00

-27.00

1.00

5.00

-3.00

0.00

-10.00

1.00

-2.46

10-Year Selected LCY Government Bond Yields

Close of 14 October 2011

Previous

Day*

Previous

Week*1-Jan-11*

US 2.25 6.43 17.13 -104.58

EU 2.20 9.40 19.70 -76.40

Japan 1.02 -0.40 3.10 -10.90

PRC 3.78 -1.00 -15.00 -13.00

Hong Kong, China 1.33 -3.50 7.50 -153.10

India 8.79 6.60 21.20 87.10

Indonesia 6.35 -5.80 -51.70 -125.40

Malaysia 3.69 0.00 0.30 -34.50

Korea, Rep. of 3.77 -1.00 -6.00 -75.00

Philippines 5.77 -0.63 -12.60 -12.04

Singapore 1.62 -1.00 -1.00 -109.00

Thailand 3.49 2.70 -7.10 -23.80

Viet Nam 12.55 5.00 -9.30 80.00

basis point change fromLatestClosing

Markets

17.13

19.70

3.10

-15.00

7.50

21.20

-51.70

0.30

-6.00

-12.60

-1.00

-7.10

-9.30

Source: Based on data from Bloomberg, LP.



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DEBT HIGHLIGHTS

ASIANBONDSONLINE

Benchmark Yield Curves – Local Currency Government Bonds

ip: Zoom-in on the table using the Acrobat zoom tool T Hong Kong, China Indonesia China, People’s Rep. of

Source: Based on data from Bloomberg.

JapanEUUS

Viet Nam ThailandSingapore

PhilippinesMalaysiaKorea, Republic of

3.00

3.25

3.50

3.75

4.00

4.25

0 1 2 3 4 5 6 7 8 9 10 11 12

Y i e l d ( % )

Time to maturity (years)

14 -O ct -1 1 07 -O ct -1 1 3 0- Sep -11

0.0

0.5

1.0

1.5

2.0

0 2 4 6 8 10 12 14 16

Y i e l d ( % )


14- Oc t- 11 07- Oc t- 11 30- Sep -11

5.0

5.8

6.5

7.3

8.0

8.8

0 3 6 9 12 15 18 21 24 27 30 33

Y i e l d ( % )


14- Oc t- 11 07- Oc t- 11 30- Sep -11

3.00

3.25

3.50

3.75

4.00

4.25

0 2 4 6 8 10 12 14 16 18 20 22

Y i e l d ( % )


14 -O ct -1 1 07 -O ct -11 30 -Se p- 11

2.8

3.0

3.2

3.4

3.6

3.8

4.0

4.2

0 2 4 6 8 10 12 14 16 1 8 20 22

Y i e l d ( % )


0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0 3 6 9 12 15 18 21 24 27

Y i e l d ( % )


1 4- Oc t- 11 0 7- Oc t- 1114- Oc t- 11 07- Oc t- 11 30- Sep -11 30-Sep-11

0.0

0.5

1.0

1.5

2.0

2.5

0 3 6 9 12 15 18 21

Y i e l d ( % )


14- Oc t- 11 07- Oc t- 11 30- Sep -11

3.0

3.3

3.5

3.8

4.0

0 2 4 6 8 10 12 14 16

Y i e l d ( % )


12.0

12.3

12.5

12.8

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Y i e l d ( % )


14- Oc t- 11 07- Oc t- 11 30- Sep -11 14- Oct- 11 07- Oct -11 30- Sep -11

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0 4 8 12 16 20 24 28 32

Y i e l d ( % )


14- Oc t- 11 07- Oc t- 11 30- Sep -11

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0 5 10 15 20 25 30

Y i e l d ( % )


0.0

0.3

0.5

0.8

1.0

1.3

1.5

1.8

2.0

2.3

0 4 8 12 16 20 24 28 32 36 40

Y i e l d ( % )


1 4- Oc t- 11 0 7- Oc t- 111 4-O ct -1 1 07 -O ct -11 3 0-Se p-1 1

30-Sep-11

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DEBT HIGHLIGHTS

ASIANBONDSONLINE

2-versus-10 Yield Spread Chart

table using the Acrobat zoom tool Tip: Zoom-in on the

Yield Spread between the Two- and Ten-Year Government Bonds

0 50 100 150 200 250 300 350 400

China, People's Rep. of

Hong Kong, China

Indonesia

Korea, Rep. of

Malaysia

Philippines

Singapore

Thailand

Viet Nam

U.S.

E.U.

Japan

basis points

14-Oct-11

7-Oct-11

30-Sep-11

Source: Based on data from Bloomberg LP.

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DEBT HIGHLIGHTS ASIANBONDSONLINE

Policy Rate versus Inflation Rate Charts

ip: Zoom-in on the table using the Acrobat zoom tool T

China, People’s Rep. of Hong Kong, China India

Philippines Thailand

PRC uses 1-year lending rate as one of its policy rates.

Source: Bloomberg LP.

The Hong Kong Monetary Authority maintains a Discount

Window Base Rate. Source: Bloomberg LP.

The Reserve Bank of India uses the repurchase (repo) cut-

off yield as its policy rate. Source: Bloomberg LP.

Indonesia Korea, Republic of Malaysia

Bank Indonesia uses its reference interest rate (BI rate) as its

policy rate. Source: Bloomberg LP. The Bank of Korea shifted its policy rate from the overnight

repurchase (repo) rate to the 7-day repo rate in March 2008.

Source: Bloomberg LP.

Bank Negara Malaysia uses the overnight policy rate

(OPR) as its policy rate. Source: Bloomberg LP.

Viet Nam

Bangko Sentral uses the Philippine overnight reverse

repurchase agreement rate as one of its policy

instruments. Source: Bloomberg LP.

The Bank of Thailand replaced the 14-day repurchase

rate with the 1-day repurchase rate in January 2007 as

its policy rate. Source: Bloomberg LP.

The State Bank of Viet Nam uses a benchmark prime

lending rate as its policy rate. Source: Bloomberg LP.

Inflation Rate

6.10

1-yearLending Rate

6.56

-4

-2

0

2

4

6

8

10

Jan-06 Dec-06 Dec-07 Nov-08 Nov-09 Oct-10 Oct-11

Inflation Rate

5.7

HKMA BaseRate

0.5

-4

-2

0

2

4

6

8


9.72RepurchaseCut-off Yield

Inflation Rate

8.25

-2

0

2

4

6

8

10

12


Inflation Rate

3.30

OvernightPolicy Rate

3.00

-4

-2

0

2

4

6

8

10


Inflation Rate

4.30

7-Day RepoRate

3.25

0

4

6

8


2

Inflation Rate4.61

6.5

0

2

4

6

8

10

12

14

16

18

20


BI Rate

InflationRate

4.80

OvernightReverse

Repo Rate

4.50

0

2

4

6

8

10

12


Inflation Rate

4.03

1-Day RepoRate

3.50

-6

-4

-2

0

2

4

6

8

10


Inflation Rate

22.42

PrimeLending Rate

9.00

0

3

6

9

12

15

18

21

24

27

30


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DEBT HIGHLIGHTS

ASIANBONDSONLINE

Credit Default Swap Spreads & Exchange Rate Indexes

ip: Zoom-in on the table using the Acrobat zoom tool T Credit Default Swap Spreads - Senior 5-year*

Exchange Rate Indexes (vis-à-vis US$, 2 January 2007=100)

* In USD currency and basedon sovereign bonds

Source: Thomson Reuters

M i d s p r e

a d i n b a s i s p o i n t s

Source: ADB-OREI staff calculations based onBloomberg data.

50

60

70

80

90

100

110

120

130

50

60

70

80

90

100

110

120

130

Jan-07 Aug-07 Mar-08 O ct-08 May-09 Dec-09 Jul-10 Feb-11 O ct-11


Indonesia

Malaysia

Phil ippines

Thailand

Singapore

Korea, Rep. of

Viet Nam

0

20 0

40 0

60 0

80 0

1,000

1,200

1,400

Dec-07 Dec-08 Nov-09 Oct-10 Oct-11


Hong Kong, China

Indonesia

Korea, Rep. of

Japan

Malaysia

Phil ippines

Thailand

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Selected Debt Security Issuances (10 – 14 October 2011 )

ip: Zoom-in on the table using the Acrobat zoom tool T

PRC 11-Oct 1-year PBOC Bills 3.58 10.00 10.00

12-Oct 7-year Government Bonds 3.65 30.00 30.00

13-Oct 3-month PBOC Bills 3.16 7.00 7.00

3-year PBOC Notes 3.97 20.00 20.00

HK 11-Oct 91-day Exchange Fund Bills 0.11 27.31 27.31

182-day Exchange Fund Bills 0.13 9.00 9.00

364-day Exchange Fund Bills 0.15 5.00 5.00

ID 11-Oct 6-month Islamic Treasury Bills 5.33 500.00 420.00

1-year Treasury Bills 8.00 370.00

JP 11-Oct 2-month Treasury Discount Bills 0.10 2,500.00 2,499.82

12-Oct 3-month Treasury Discount Bills 0.10 5,100.00 5,109.83

13-Oct 30-year Japan Government Bonds 1.94 2.00 700.00 699.40KR 04-Oct 91-day Monetary Stabilization Bonds 3.35 1,200.00 1,200.00

1-year Monetary Stabilization Bonds 3.46 800.00 800.00

5-year Treasury Bonds 3.59 1,600.00 1,600.00

MY 10-Oct 91-day BNM Notes 2.93 1.00 1.50

126-day BNM Islamic Notes 2.96 0.50 0.50

12-Oct 154-day BNM Islamic Notes 2.92 0.50 0.50

364-day BNM Notes 2.90 1.50 1.50

13-Oct 3-year Malaysian Government Securities 3.13 3.20 3.20

TH 11-Oct 28-day BOT Bills 3.43 17.00 17.00

91-day BOT Bills 3.44 17.00 17.00

182-day BOT Bills 3.44 15.00 15.00

13-Oct 14-day BOT Bills 3.41 65.00 65.00

Sources: Local market sources and Bloomberg, LP.

Coupon

(in %)

Amount Offered LCY

Billions

Amount Issued LCY

Billionsarkets Auction Date Type of Security

Average Yield

(%)

…………………………………………………………………………………………………………………………………



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Selected Asia Data Releases (18 - 24 October 2011)

Source: AsianBondsOnline, Bloomberg LP, and Reuters.

Viet Nam

CPI

y-o-y, %

OCT

10/24 09/10: 8.9%

10/10: 9.7%

08/11: 23.0%

09/11: 22.4%

Consumer price inflation in Viet Nam eased marginally to 22.4% y-o-y in September

from 23.0% in August.

10/21 to 10/25 08/10: 1.3

09/10: –31.7

07/11: –26.5

08/11: 9.2

The Philippines posted a budget surplus of PHP9.2 billion in A ugust in a turnaround

from the deficit of PHP26.5 billion in July.

Singapore

CPI

y-o-y, %

SEP

10/24 08/10: 3.3%

09/10: 3.7%

07/11: 5.4%

08/11: 5.7%

Consumer price inflation in Singapore acc elerated to 5.7% y -o-y in A ugust from

5.4% in July.

Philippines

Budget Balance

PHP billion

SEP

People’s Republic of China

GDP

y-o-y, %

3Q11

10/18 2Q10: 10.3%

3Q10: 9.6%

1Q11: 9.7%

2Q11: 9.5%

The People’s Republic of China’s (PRC) gross domestic product (GDP) grow th rate

expanded 9.5% y ear-on-year (y-o-y) in 2Q11, dow n slightly from 9.7% grow th in

1Q11.

Hong Kong, China

Unem ploym ent Rate

y-o-y, %

SEP

08/10: 13.9%

09/10: 13.3%

07/11: 14.0%

08/11: 13.5%

The PRC’s industrial production grow th declined slightly to 13.5% y-o-y in Augus t

from 14.0% in July.

10/18People’s Republic of China

Industrial Production

y-o-y, %

SEP

People’s Republic of China

Retail Sales

y-o-y, %

SEP

10/18 08/10: 18.4%

09/10: 18.8%

07/11: 17.2%

08/11: 17.0%

10/21 08/10: 2.0%09/10: 1.8%

07/11: 3.4%

08/11: 3.3%

10/20

10/19 09/10: 1.75%

10/10: 1.75%

08/11: 3.50%

09/11: 3.50%

08/10: 0.4

09/10: 3.1

07/11: 1.3

08/11: 2.7

The Philippines’ balance of payments s urplus ros e to USD2.7 billion in Augus t fr om

USD1.3 billion in July .

Philippines

Balance of Payme nts

USD billion

SEP

Hong Kong, China

CPI

y-o-y, %

SEP

10/21 08/10: 3.0%

09/10: 2.6%

07/11: 7.9%

08/11: 5.7%

Hong Kong, China’s consumer price inflation slow ed to 5.7% y-o-y in Augus t from

7.9% in July.

R e le a s e D a te R e c e n t T r e n d so u n tr y /V a r ia b le H is to r ic a l D a ta

Malays ia’s c onsumer price inflation eased s lightly to 3.3% y-o-y in August f rom3.4% in July.

Retail sales in the PRC grew at a similar pace of 17.0% in Augus t compared w ith

17.2% in the prior month.

09/10: 4.00%

10/10: 4.00%

08/11: 4.50%

09/11: 4.50%

The Monetary Board of Bangko Sentral ng Pilipinas (BSP) has kept its overnight

policy rate steady at 4.50% since May.

Thailand

1-Day Repurchas e Rate

%

19 OCT

10/18 08/10: 4.3%

09/10: 4.2%

07/11: 3.4%

08/11: 3.2%

The Bank of Thailand raised its 1-day repurchas e rate to 3.50% on 24 Augus t, the

sixth rate hike since January.

MalaysiaCPI

y-o-y, %

SEP

Hong Kong, China’s rate of unemployment eased in A ugust to 3.2% f rom 3.4% in

July.

Philippines

Overnight Borrow ing Rate

%

20 OCT

10/19

1

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DEBT HIGHLIGHTS

Tip: Click on link to open a new browser (Acrobat Reader 8); for lower versions right-click to open a new browser)

News Articles: Sources for Further Reading

Philippines Accepts US$1.3 billion in Bond Buyback,Launches Retail Treasury Bond;Banco de Oro Issues PHP6.5 billion of UnsecuredSubordinated Notes; Philippine Government AnnouncesPHP72 billion Fiscal Stimulus Package to Boost Growth

• Phl to buy back $1.5-billion bondsPhilippine Star (11 October 2011)

• BONDS: RoP reopens 2034s and raises US$50m at 117.50IFR Asia (11 October 2011)

• Phl launches another RTB offerPhilippine Star (11 October 2011)

• BDO issues P6.5B worth of Tier 2 notesPhilippine Star (11 October 2011)

• Aquino unveils P72-B stimulus planBusiness Mirror (13 October 2011)

PRC’s Ministry of Railways Sells 5- and 20-Year Bonds;ICBC, Citic Bank, and China Construction Bank IssuesCertificate of Deposits in Hong Kong, China;LCY Bond Issuance in the Republic of Korea and Malay

• Bond Tax Rule Aids China Railway MinistryWall Street Journal (12 October 2011)

• BONDS: China pledges full support for railway bondsIFRAsia (14 October 2011)

• China Upgrades Status of Railway Ministry Bonds Wall Street Journal (14 October 2011)

• Sukuk for the palm

IFR Asia (08 October 2011)

• Danajamin to guarantee TRIplc Ventures' RM240mbond issueBusiness Times (11 October 2011)

• Bonds for education IFR Asia (15 October 2011)

Bank Indonesia Cuts Benchmark Rate 25 bps to 6.50%;Bank of Korea Holds 7-Day Repurchase Rate Steady at3.25%; MAS to Continue Policy of Modest and GradualAppreciation of the Singapore Dollar

• BI Rate Decreased 25 BPS To 6,50%Bank Indonesia (11 October 2011)

• Monetary Policy Decision

Bank of Korea (13 October 2011)

• MAS Monetary Policy Statement Monetary Authority of Singapore (14 October 2011)

Singapore’s Advance GDP Estimate for 3Q11 is 5.9%;Industrial Production and Manufacturing Sales inMalaysia Rise in August

• MTI Expects 2011 Growth to Be Around 5.0 Per CentMinistry of Trade and Industry (14 October 2011)

• Index of Industrial Production Malaysia August 2011Department of Statistics Malaysia (11 October 2011)

• Monthly Manufacturing Statistics Malaysia August 2011Department of Statistics Malaysia (11 October 2011)

PRC Posts Trade Surplus of USD14.5 Billion inSeptember; Export Growth in the Philippines Falls 15.1%in August

• China Export Growth Dwindles to Slowest Pace in Seven

Months as Yuan GainsBloomberg (13 October 2011)

• Merchandise Export Performance* - August 2011 ( Preliminary )National Statistics Office (11 October 2011)

M3 Money Supply in the Philippines Expands 9.3%in August

• Domestic Liquidity Growth Accelerates in AugustBangko Sentral ng Pilipinas (11 October 2011)

• Foreign Direct Investments Post Net Inflows in July 2011Bangko Sentral ng Pilipinas (12 October 2011)

• Foreign Portfolio Investment Transactions Yield Net

Inflows in September 2011 Bangko Sentral ng Pilipinas (13 October 2011)

…………………………………………………………………………………………………………………………………

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12

http://www.philstar.com/Article.aspx?articleId=735993&publicationSubCategoryId=66

http://www.ifrasia.com/bonds-rop-reopens-2034s-and-raises-us$50m-at-11750/1610551.article


http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=735994


http://businessmirror.com.ph/home/top-news/17838-aquino-unveils-p72-b-stimulus-plan

http://online.wsj.com/article/SB10001424052970204002304576626851162447230.html

http://www.ifrasia.com/bonds-china-pledges-full-support-for-railway-bonds/1610960.article


http://www.ifrasia.com/sukuk-for-the-palm/1609793.article


http://www.btimes.com.my/articles/danajamin10/Article/


http://www.ifrasia.com/bonds-for-education/1610549.article

http://www.bi.go.id/web/en/Ruang+Media/Siaran+Pers/SP_133311.htm

http://www.bok.or.kr/down.search?file_path=/attach/eng/634/2011/10/1318471107241.pdf&file_name=Monetary%20Policy%20Decision(1110).pdf

http://www.mas.gov.sg/news_room/statements/2011/Monetary_Policy_Statement_14Oct11.html

http://app.mti.gov.sg/data/article/26221/doc/PR%203Q11%20Adv%20Estimates.pdf

http://www.statistics.gov.my/portal/index.php?option=com_content&view=article&id=1289&Itemid=89&lang=en


http://www.bloomberg.com/news/2011-10-13/china-trade-surplus-drops-to-lowest-in-four-months-as-export-growth-slows.html


http://www.census.gov.ph/data/pressrelease/2011/ex1108tx.html


http://www.bsp.gov.ph/publications/media.asp?id=2698




http://www.philstar.com/Article.aspx?articleId=735993&publicationSubCategoryId=66





http://www.ifrasia.com/bonds-china-pledges-full-support-for-railway-bonds/1610960.article





http://www.ifrasia.com/bonds-for-education/1610549.article

http://www.bi.go.id/web/en/Ruang+Media/Siaran+Pers/SP_133311.htm

http://www.bok.or.kr/down.search?file_path=/attach/eng/634/2011/10/1318471107241.pdf&file_name=Monetary%20Policy%20Decision(1110).pdf

http://www.mas.gov.sg/news_room/statements/2011/Monetary_Policy_Statement_14Oct11.html











http://app.mti.gov.sg/data/article/26221/doc/PR%203Q11%20Adv%20Estimates.pdf

http://businessmirror.com.ph/home/top-news/17838-aquino-unveils-p72-b-stimulus-plan


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