A business area in Jakarta this year. Indonesia's capital outflows have been relatively low compared with previous market sell-offs. © EPA/Jiji

Asia recovery story shelters bond investors from sell-off

Economies that were fragile now have stronger reserves and more local liquidity

NARAYANAN SOMASUNDARAM, Nikkei Asia chief banking and financial correspondent

March 15, 2021 06:07 JST

HONG KONG -- Asian fixed income markets have defied expectations and remained resilient amid a global bond market sell-off over the past few weeks.

The region has often felt the worst of the chill when global sentiment has turned against fixed income investing. However the yield premium that the region offers over its developed market peers, healthier corporate and government balance sheets and an increasing local investor base means that its long-term attractiveness remains intact, investors and analysts said.