29 August 2011

onsumer price inflation in Hong Kong, China quickened to 7.9% year-on-year (y-o-y) in July due to increasing food prices and a low base effect resulting from the timing difference of government's public housing relief measures. Japan's core consumer price index rose slightly in July to 0.1% y-o-y as energy prices increased. Singapore's consumer price inflation accelerated to 5.4% y-o-y in July from 5.2% in June on the back of higher costs for transportation, accommodation, and food. Consumer price inflation in Viet Nam rose to its highest level since December 2008, reaching 23.1% y-o-y in August from 22.2% in July as costs for food surged. The Bank of Thailand last week raised its 1day repurchase rate by another 25 basis points to 3.5%. This was the sixth consecutive rate hike since January. Heightened concerns over inflation outweighed the risks to growth as domestic consumption and investment are expected to remain robust. Moody's Investors Service lowered Japan's credit rating to Aa3 from Aa2. The outlook on the ratings is stable. Standard and Poor's affirmed its AAA sovereign credit rating and stable outlook for the Singapore government's long-term debt. On 24 August, the Japan Credit Rating Agency (JCR) affirmed Indonesia's ratings for long-term FCY and LCY senior debt at BBBand BBB, respectively. The outlook for both ratings was stable. The People's Bank of China (PBOC) announced the expansion of the existing crossborder trade renminbi settlement program to include the entire country. During the first half of the year, the People's Republic of China's (PRC) total renminbi settlement in cross-border trade increased 13.3 times to reach RMB957.6 billion. The Republic of Korea's external debt position rose to USD398.0 billion in June. The country's outstanding household loans grew 8.7% y-o-y in July to reach KRW826 trillion. Finally, the credit default swap (CDS) spread for 5-year FCY-denominated government bonds widened to 149.2 basis points. LCY corporate bond issuance in the Republic of Korea was down 29.5% month-on-month (m-om) to KRW8.1 trillion in July. However, the cumulative corporate bond issuance over the January-July period stood at KRW75.1 trillion, which was up 9.3% y-o-y. Last week, KT Corporation of the Republic of Korea raised KRW600 billion from a tripletranche bond sale. In Malaysia, YTL Power

Key Developments in Asian Local Currency Markets

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Asia Bond Monitor March 2011

10-Year Selected LCY Government Security Yields
Markets

read more
Close of 26 August 2011

basis point change from Latest Closing Previous Day* Previous Week* 1-Jan-11*
2.19 2.16 1.04 3.95 1.76 8.30 6.84 3.65 3.87 5.77 1.63 3.49 12.72 -3.87 -2.90 0.10 0.00 -0.20 6.50 -1.30 -0.20 3.00 0.78 0.00 1.20 14.60 12.76 -110.36 12.76 5.20 -80.60 5.30 -8.50 5.30 4.00 1.00 1.00 13.9013.90 -109.90 3.90 3.90 38.40 -10.10 -76.40 0.80 0.80 -39.30 3.00 3.00 -65.00 8.09 8.09 -12.01 4.00 4.00 -108.00 1.90 1.90 -23.20 17.70 17.70 96.70
5.20

US EU Japan PR C H ong Kong, C hina In dia Indones ia Malays ia Korea, R ep. of Philippines Singapore Thailand Viet N am

-10.10

Selected Government Security Yields Benchmark Yield Curves - Local Currency Government Bonds 2-versus-10 Yield Spread Chart Policy Rate versus Inflation Rate Charts Credit Default Swap Spreads & Exchange Rate Indexes Selected Debt Security Issuances Selected Asia Data Releases

International sold MYR2.2 billion worth of 7-year notes with a coupon of 4.35%. In the Philippines, United Coconut Planters Bank issued PHP3.15 billion of LTNCD (long-term negotiable certificates of time deposit), which carry a coupon of 6.0% (payable quarterly) and have a maturity of 5 years and 3 months. Thai property developer Quality Houses raised a total of THB3 billion in bonds. Meanwhile, the State Railway of Thailand issued THB1 billion of 12-year bonds at a coupon of 3.99%. Government bond yields fell last week for most tenors in Indonesia, Malaysia, and the Philippines, while yields rose for all tenors in Viet Nam and for most tenors in Hong Kong, China; and Singapore. Yield movements were mixed in the PRC, the Republic of Korea and Thailand. Yield spreads between 2- and 10- year maturities widened in Hong Kong, China; the Republic of Korea; Malaysia; the Philippines; Singapore; and Viet Nam, while spreads narrowed in the rest of emerging East Asian markets. What's New: The next edition of the Asia Bond Monitor will be launched on 1 September. 1

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Summary Text of News Articles

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Consumer Price Inflation Accelerates in Hong Kong, China; Japan; Singapore; and Viet Nam

Consumer price inflation in Hong Kong, China rose to 7.9% year-on-year (y-o-y) in July. According to the Census and Statistics Department, the large increase was partly due to a low base effect resulting from the difference in the timing of the waiving of public housing rentals that took effect in July-September in 2010 and in August-September in 2011. Netting out the effect of the government's one-off relief measures, consumer price inflation rose to 5.8% y-o-y in July from 5.6% in June, due to higher food prices and private residential rentals. In Japan, consumer price inflation climbed slightly to 0.2% y-o-y in July from a decline of 0.4% in June, mostly on increases in energy costs. The core consumer price index (CPI)-which includes oil products but excludes volatile prices of fresh fruit, vegetables, and seafood-was up 0.1% y-o-y in July against a forecasted -0.1% decline. The government sharply revised this year's CPI data downward earlier this month after changing the base year and the components that comprise the index to better reflect trends in consumer spending. The government revises the base year for the data once every 5 years. Singapore's consumer price inflation accelerated to 5.4% y-o-y in July from 5.2% in June as a result of higher costs for transportation, accommodation, and food. Transportation costs rose 11.5% y-o-y in July from 10.4% in June, while housing costs increased 9.5% in July from 8.8% in June. Food price increases eased slightly to 3.0% y-o-y in July from 3.1% in June. On a month-on-month (m-o-m) basis, consumer price inflation rose 1.5% in July. Core inflation rose 2.2% y-o-y and 0.5% q-o-q. Consumer price inflation in Viet Nam in August rose to its highest level since December 2008, reaching 23.1% y-o-y from 22.2% in July. Prices for food and foodstuff surged 34.1% y-o-y in August, while the cost of education increased 25.2%. Costs for construction materials and transportation increased 23.8% and 21.5% y-o-y, respectively. On a m-o-m basis, consumer price inflation rose 0.9%. For historical trends on Hong Kong, China's consumer price inflation, refer to this link: http://asianbondsonline.adb.org/hongkong/data/marketwatch.php?code=policy_rate_and_inflation_trends For historical trends on Japan's consumer price inflation, refer to this link: http://asianbondsonline.adb.org/japan/data/marketwatch.php?code=policy_rate_and_inflation_trends For historical trends on Singapore's consumer price inflation, refer to this link: http://asianbondsonline.adb.org/singapore/data/macroeconomic_credit.php For historical trends on Vietnam's consumer price inflation, refer to this link: http://asianbondsonline.adb.org/vietnam/data/marketwatch.php?code=policy_rate_and_inflation_trends

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Thailand Raises Repurchase Rate 25 bps to 3.5%

The Bank of Thailand (BOT) raised its 1-day repurchase rate by another 25 basis points (bps) last week for the sixth consecutive rate hike since January. The Monetary Policy Committee of the BOT voted 5 to 2 to increase the policy rate 25 bps to 3.5%, citing the heightened risk of inflation as the primary reason. Inflationary pressure is becoming an increasing concern as domestic consumption and investment are expected to expand. Favorable employment conditions, improved consumer confidence, strong growth in credit, and fiscal stimulus are expected to boost domestic demand. Thailand's policy rate is likely to be raised again in November to 4.0%, according to analysts. For historical trends on Thailand's policy rate, refer to this link: http://asianbondsonline.adb.org/thailand/data/marketwatch.php?code=policy_rate_and_inflation_trends

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Japan Credit Rating Agency Affirms Indonesia's BBB- Rating; Moody's Lowers Japan's Credit Rating to Aa3; S&P Affirms AAA Credit Rating for Singapore

On 24 August, Japan Credit Rating Agency (JCR) affirmed Indonesia's ratings for long-term FCY senior debt at BBBand long-term LCY senior debt at BBB. The outlook for both ratings was stable. According to JCR, its ratings reflect Indonesia's sustainable economic growth outlook, which is underpinned by solid domestic demand, a reduced public debt burden, and reinforced resilience to external shocks.

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Summary Text of News Articles Japan Credit Rating Agency Affirms Indonesia's BBB- Rating; Moody's Lowers Japan's Credit Rating to Aa3; S&P Affirms AAA Credit Rating for Singapore (cont)

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Moody's Investors Service (Moody's) lowered Japan's credit rating to Aa3 from Aa2 on 24 August. The outlook on the rating is stable. According to Moody's, the rating downgrade was prompted by large budget deficits and the build-up of Japanese government debt since the 2008/09 global recession. Moody's identified several factors that are making it difficult for Japan to slow the growth of its debt-to-GDP ratio, including frequent changes in administrations over the past 5 years that have prevented the government from implementing long-term economic and fiscal strategies. This latest rating action, however, does not affect Moody's Aaa ratings for Japan's country and bank deposit ceilings. Standard and Poor's (S&P) announced that it had affirmed its AAA sovereign credit rating and stable outlook for the Singapore government's long-term debt. The reaffirmation reflects Singapore's "extensive fiscal and external strengths, and its solid record of prudent macroeconomic management," according to S&P. Singapore is the only country in Asia to hold S&P's AAA credit rating. For statistics on Indonesia's sovereign ratings, refer to this link: http://asianbondsonline.adb.org/indonesia.php For statistics on Japan's sovereign ratings, refer to this link: http://asianbondsonline.adb.org/japan.php For statistics on Singapore's sovereign ratings, refer to this link: http://asianbondsonline.adb.org/singapore.php

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PBOC's Cross-Border Trade Renminbi Settlement Program Expands Nationwide

The People's Bank of China (PBOC) announced the expansion of the existing cross-border trade renminbi settlement program to include the entire country. When the program was launched in July 2009, only 365 enterprises in Shanghai, Guangzhou, Shenzhen, Zhuhai, and Dongguan were allowed to use renminbi to settle their trade with partners in Hong Kong, China; Macau; and Association of Southeast Asian Nations (ASEAN) member countries. In June 2010, the program was expanded to cover 20 additional provincial regions, municipalities, and autonomous regions in the People's Republic of China (PRC). During the first half of this year, the People's Republic of China's (PRC) total crossborder trade renminbi settlement increased 13.3 times to reach RMB957.6 billion.

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Republic of Korea's External Debt Rises to USD398 Billion in June, Household Loans Climb 8.7% in 2Q11, CDS Premiums Surge and Consumer Confidence Falls in August

The Republic of Korea's external debt position rose to USD398.0 billion in June from USD382.6 billion in March. This was led by a USD14.1 billion quarter-on-quarter (q-o-q) increase in long-term external debt, which stood at USD248.2 billion at end-June. Short-term external debt rose USD1.3 billion to USD149.7 billion. Banks remained as the largest holder of external debt, accounting for 49.4% of the total. Meanwhile, the country's outstanding amount of household loans at end-July stood at KRW826.0 trillion, up 8.7% y-o-y. The outstanding household loans of commercial and specialized banks' rose KRW9.2 trillion in 2Q11 to KRW444.3 trillion, while loans extended by non-bank depository corporations and other financial corporations increased KRW6.4 trillion to KRW173.6 trillion and KRW2.2 trillion to KRW208.2 trillion, respectively. Last week, the credit default swap (CDS) spread on the Republic of Korea's FCY-denominated government bonds jumped amid worries over United States (US) and European financial institutions. The CDS spread on the country's 5year FCY-denominated government bonds widened to 149 bps on 24 August, the highest level since it reached 153 bps in May 2010. Lastly, the Republic of Korea's composite consumer sentiment index fell 3 points in August to 99 amid a significant weakening of confidence in current domestic economic conditions.

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Issuance in the Republic of Korea, Malaysia, Philippines, and Thailand

In the Republic of Korea, LCY corporate bond issuance was down 29.5% month-on-month (m-o-m) to KRW8.1 trillion in July, compared with KRW11.5 trillion in June, based on Financial Supervisory Service data. This was partly due to a 62.0% monthly drop in bank debentures, which amounted to KRW1.2 trillion for the month, as domestic banks registered higher deposits, resulting in lower demand for funding. Bonds issued by financial companies fell 11.2% m-om to KRW2.7 trillion and issuance of asset-backed securities plunged 84.0% m-o-m to KRW213 billion in July. Issuance by non-financial companies in July remained about the same from the previous month at KRW4.0 trillion. However, cumulative corporate bond issuance in January-July stood at KRW75.1 trillion, which was up 9.3% y-o-y. Meanwhile, KT Corporation raised KRW600 billion from a triple-tranche bond sale last week. These bonds include a 5year tenor worth KRW260 billion with a coupon rate of 4.06%, a KRW250 billion 10-year tenor issued at a coupon rate of 4.19%, and a KRW90 billion 7-year tenor at a coupon rate of 4.11%. In Malaysia, YTL Power International issued MYR2.2 billion worth of 7-year notes under its newly established MYR5 billion Medium-Term Notes Programme. The issuance, rated AA1 by RAM Ratings, carries an annual coupon of 4.35%. In the Philippines, United Coconut Planters Bank raised PHP3.15 billion from its issuance of LTNCD (long-term negotiable certificates of time deposit), which carry a coupon of 6% (payable quarterly) and have a maturity of 5 years and 3 months. The proceeds from the offering will be used to expand the bank's consumer lending operations. Citicorp Capital Philippines Inc. was the lead arranger for the issue. Thai property developer Quality Houses raised a total of THB3 billion in two tranches last week. Its 4-year bonds have an issue size of THB1.6 billion and carry a 4.7% coupon, while the 5-year bonds have an issue size of THB1.4 billion at a coupon of 5.0%. Meanwhile, the State Railway of Thailand issued THB1 billion of 12-year bonds at a coupon of 3.99%.

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Selected Government Security Yields

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3-Month Selected LCY Government Security Yields

Latest Closing -0.01 0.57 0.10 3.24 0.10 8.30 2.95 3.27 0.81 0.13 3.35 basis point change from Previous Previous 1-Jan-11* Day* Week* -0.51 0.00 -0.51 -12.48 -12.40 0.90 -12.40 17.40 0.00 0.00 0.00 -2.40 0.00 0.00 0.00 6.00 2.00 0.00 2.00 -18.00 0.00 0.00 0.00 120.00 -0.10 0.00 -0.10 16.70 -1.00 0.00 -1.00 76.00 -4.29 -103.71 -103.71 -38.21 2.00 0.00 2.00 -26.00 3.86 1.71 3.86 138.00

Markets US EU Japan PRC Hong Kong, China India Malaysia Korea, Rep. of Philippines Singapore Thailand

Close of 26 August 2011

10-Year Selected LCY Government Bond Yields

Latest Closing 2.19 2.16 1.04 3.95 1.76 8.30 6.84 3.65 3.87 5.77 1.63 3.49 12.72 basis point change from Previous Previous 1-Jan-11* Day* Week* -3.87 12.76 12.76 -110.36 -2.90 5.20 -80.60 5.20 0.10 5.30 -8.50 5.30 0.00 1.00 4.00 1.00 -0.20 13.90 13.90 -109.90 3.90 6.50 3.90 38.40 -1.30 -10.10 -10.10 -76.40 0.80 -0.20 0.80 -39.30 3.00 3.00 3.00 -65.00 0.78 8.09 8.09 -12.01 4.00 0.00 4.00 -108.00 1.90 1.20 1.90 -23.20 17.70 96.70 14.60 17.70

Markets US EU Japan PRC Hong Kong, China India Indones ia Malays ia Korea, Rep. of Philippines Singapore Thailand Viet Nam

Close of 26 August 2011

Source: Based on data from Bloomberg, LP.

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Indonesia

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Benchmark Yield Curves Local Currency Government Bonds

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China, Peoples Rep. of

4.25 4.00 3.75
Yield (%)
Yield (%)

Hong Kong, China

3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0
Yield (%)

12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 0 2 4 6 8 10 12 14 16 0 3 6 9 12 15 18 21 24 27 30 33

3.50 3.25 3.00 2.75 2.50 2.25 0 1 2 3 4 5 6 7 8 9 10 11 12

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Korea, Republic of
6.00 5.50 5.00
Yield (%)
Yield (%)

Malaysia
4.8 4.6 4.4 4.2 4.0 3.8 3.6 3.4 3.2 3.0 2.8 2.6 0 2 4 6 8 10 12 14 16 18 20 22 10.0 9.0 8.0 7.0
Yield (%)

Philippines

4.50 4.00 3.50 3.00 2.50 0 2 4 6 8 10 12 14 16 18 20 22

6.0 5.0 4.0 3.0 2.0 1.0 0.0 0 3 6 9 12 15 18 21 24 27

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Singapore
4.5

Thailand
13.0 4.3 4.0 3.8
Yield (%)

Viet Nam

3.5 3.0 2.5

Yield (%)

12.8
Yield (%)

3.5 3.3 3.0 2.8 2.5 2.3 2.0

2.0 1.5 1.0 0.5 0.0 0 3 6 9 12 15 18 21

12.5

12.3

12.0 0 2 4 6 8 10 12 14 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

US
5.0 4.5 4.0 3.5
Yield (%)
4.5 4.0 3.5 3.0

EU
2.5 2.3 2.0 1.8
Yield (%)

Japan

Yield (%)

3.0 2.5 2.0 1.5 1.0 0.5 0.0 0 4 8 12 16 20 24 28 32

2.5 2.0 1.5 1.0 0.5 0.0 0 5 10 15 20 25 30

1.5 1.3 1.0 0.8 0.5 0.3 0.0 0 4 8 12 16 20 24 28 32 36 40

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Time to maturity (years)

26-Aug-11 19-Aug-11 12-Aug-11

Source: Based on data from Bloomberg.

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2-versus-10 Yield Spread Chart

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

China, People's Rep. of Hong Kong, China Indonesia Korea, Rep. of Malaysia Philippines Singapore Thailand Viet Nam U.S. E.U. Japan 0 50 100 150 200 basis points 250 300 350

26-Aug-11 19-Aug-11 12-Aug-11

Source: Based on data from Bloomberg LP.

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India

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Policy Rate versus Inflation Rate Charts

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China, Peoples Rep. of

10 8 6 4 2 2 0 0 -2 -4 Jan-05 Sep-05 Jun-06 Mar-07 Dec-07 Aug-08 May-09 Feb-10 Nov-10 Aug-11 Inflation Rate -2 -4 1-year Lending Rate 6.56 6.50 8 6 4

Hong Kong, China

7.9 12 10 HKMA Base Rate Inflation Rate x 8 6 4 Inflation Rate 2 0 -2 Repurchase Cut-off Yield

9.22 8.00

0.5

Jan-05 Sep-05 Jun-06 Mar-07 Dec-07 Aug-08 May-09 Feb-10 Nov-10 Aug-11

Jan-05 Sep-05 Jun-06 Mar-07 Dec-07 Aug-08May-09 Feb-10 Nov-10 Aug-11

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) cutoff yield as its policy rate. Source: Bloomberg LP.

Indonesia
20 18 8

Korea, Republic of
10
c

Malaysia

8 6 4.70 4 2 0

16 14 12 10 8 6 4 2 0

BI Rate

7-Day Repo Rate

Overnight Policy Rate

3.40 3.00

4 3.25 6.75 4.61 Inflation Rate 0 Jan-05 Sep-05 Jun-06 Mar-07 Dec-07 Aug-08 May-09 Feb-10 Nov-10Aug-11 2 Inflation Rate

-2 -4

Inflation Rate

Jan-05 Sep-05Jun-06 Mar-07 Dec-07 Aug-08May-09 Feb-10 Nov-10 Aug-11

Jan-05 Sep-05 Jun-06 Mar-07 Dec-07Aug-08 May-09 Feb-10 Nov-10 Aug-11

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.

Philippines
12 10 8 6 5.10 4 2 0 Jan-05 Sep-05 Jun-06 Mar-07 Dec-07Aug-08 May-09 Feb-10 Nov-10 Aug-11 4.50 0 -2 Overnight Reverse Repo Rate 10 8 Inflation Rate 6

Thailand
30 Inflation Rate 27 24 21 4 2 1-Day Repo Rate 4.08 3.50 15 12 9 6 -4 -6 Jan-05 Sep-05 Jun-06 Mar-07 Dec-07 Aug-08May-09 Feb-10 Nov-10 Aug-11 3 0 18 Prime Lending Rate

Viet Nam

Inflation Rate 22.16

9.00

Jan-05 Sep-05 Jun-06 Mar-07 Dec-07Aug-08May-09Feb-10 Nov-10Aug-11

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.

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Credit Default Swap Spreads & Exchange Rate Indexes

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Credit Default Swap Spreads - Senior 5-year*

1,400
C hina , P e ople 's R e p. of

H ong K ong, C hina

1,200
Indone s ia

K ore a , R e p. of

1,000

Mid spread in basis points

J a pa n

M a la ys ia

800
P hilippine s

600

Tha ila nd

400

200

* In USD currency and based on sovereign bonds Source: Thomson Reuters

0 Dec-07 Ju n -08 No v-08 M ay-09 O ct-09 M ar-10 S ep -10 F eb -11 Au g -11

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

130 130
China , P e ople 's R e p. of

Indone s ia

120

120
Ma la ys ia

P hilippine s

110

110
Tha ila nd

100

100

S inga pore

Kore a , Re p. of

90

90
V ie t N a m

80

80

70

70

60

60

Source: ADB-OREI staff calculations based on Bloomberg data.

50 Jan - 07 A u g -07 A p r-08 D ec-08 A u g -09 A p r- 10 D ec-10 A u g - 11

50

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Selected Debt Security Issuances (22 26 August 2011)

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Mark ets
PRC

A u c tio n D ate
23-Aug 24-Aug 25-Aug

T y p e o f S ec u rity
1-year PBOC Notes 7-year China Government Bonds 3-month PBOC Notes 91-day Exchange Fund Bills 182-day Exchange Fund Bills 15-year Exchange Fund Notes

A v erag e C o u p o n A m o u n t O ffered A m o u n t Is s u ed (in % ) Y ield (% ) L C Y B illio n s L C Y B illio n s

3.58 3.70 3.16 0.10 0.11 2.01 4.15 8.35 0.10 1.86 3.35 3.53 3.94 2.92 2.88 2.90 2.92 2.91 2.89 0.98 1.00 1.50 0.06 3.26 3.38 3.46 1.80 2.07 3.00 30.00 3.00 25.29 8.00 0.60 1,000.00 4,800.00 1,100.00 1,000.00 1,000.00 800.00 2.00 1.50 2.00 2.00 2.00 2.00 2.00 3.00 4.00 3.90 15.00 18.00 15.00 3.00 30.00 3.00 25.29 8.00 0.60 330.00 500.00 4,759.89 1,099.10 1,000.00 1,010.00 808.00 2.00 1.50 2.00 1.50 2.00 2.00 2.80 3.00 4.00 3.90 12.39 18.00 15.00

HK

23-Aug

ID JP KR

23-Aug 24-Aug 25-Aug 22-Aug

6-month Islamic Treasury Bills 25-year Islamic Treasury Bonds 3-month Treasury Discount Bills 20-year Japan Government Bonds 91-day Monetary Stabilization Bonds 1-year Monetary Stabilization Bonds 20-year Treasury Bonds

MY

22-Aug

86-day BNM Islamic Notes 168-day BNM Notes 364-day BNM Notes

24-Aug

56-day BNM Islamic Notes 82-day BNM Notes 210-day BNM Notes

PH

22-Aug

91-day Treasury Bills 182-day Treasury Bills 364-day Treasury Bills

SG TH

22-Aug 23-Aug

91-day Treasury Bills 28-day BOT Bills 91-day BOT Bills 182-day BOT Bills

Sources:LocalmarketsourcesandBloomberg,LP.

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Selected Asia Data Releases (30 August 5 September 2011)

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C o u n tr y / a r ia b le V
Japan Joble s s Rate y-o-y, % JUL Japan Indus tr ial Pr oduction y-o-y, % JUL Philippine s Re al GDP y-o-y, % 2Q11 Thailand Expor ts y-o-y, % JUL Indone s ia CPI y-o-y, % A UG Re public of Kore a CPI y-o-y, % A UG Re public of Kore a Exports y-o-y, % A UG Thailand CPI y-o-y, % A UG Pe ople s Re public of China PM I M anufactur ing Index A UG Japan M one tary Bas e y-o-y, % A UG Hong Kong, China Pur chas ing M anage rs Inde x Index A UG Indone s ia Exports y-o-y, % A UG Singapor e Pur chas ing M anage rs Inde x Index A UG

R e le a s e D a te
08/30

H is to r ic a l D a ta
06/10: 5.2% 07/10: 5.1% 05/11: 4.5% 06/11: 4.6% 06/10: 16.6% 07/10: 14.6% 05/11: 5.5% 06/11: 1.7% 1Q10: 8.4% 2Q10: 8.9% 4Q10: 6.1% 1Q11: 4.9% 06/10: 47.1% 07/10: 21.1% 05/11: 17.3% 06/11: 16.4% 07/10: 6.2% 08/10: 6.4% 06/11: 5.5% 07/11: 4.6% 07/10: 2.6% 08/10: 2.6% 06/11: 4.4% 07/11: 4.7% 07/10: 26.7% 08/10: 26.0% 06/11: 11.2% 07/11: 25.2% 07/10: 3.4% 08/10: 3.3% 06/11: 4.06% 07/11: 4.08% 07/10: 51.2 08/10: 51.7 06/11: 50.9 07/11: 50.7 07/10: 6.1% 08/10: 5.4% 06/11: 17.0% 07/11: 15.0% 07/10: 51.3 08/10: 52.3 06/11: 50.3 07/11: 51.4 06/10: 31.4% 07/10: 28.9% 05/11: 44.9% 06/11: 49.3% 07/10: 52.2 08/10: 49.4 06/11: 50.4 07/11: 49.3

R ec en t T ren d s
The unemployment rate in Japan climbed to 4.6% year-on-year (y-o-y) in June f rom 4.5% in May.

08/31

Japans industrial production contracted 1.7% y-o-y in Junean improvement f rom the 5.5% decline in May.

08/31

Grow th in the Philippines gross domestic product (GDP) slow ed to 4.9% y-o-y in 1Q11 f rom 6.1% in 4Q10.

08/31

Thailands export grow th rate slow ed to a 20-month low of 16.4% y-o-y in June f ollow ing 17.3% grow th in May.

09/01

Consumer price inf lation in Indonesia eased f or a sixth consecutive month in July to 4.6% y-o-y.

09/01

Consumer price inf lation in the Republic of Korea accelerated to 4.7% y-o-y in July f rom 4.4% in June.

09/01

The export grow th rate of the Republic of Korea surged to 25.2% y-o-y in July f rom 11.2% in the previous month.

09/01

Thailands consumer price inf lation rose marginally to 4.08% y-o-y in July af ter posting 4.06% in June.

09/01

The manuf acturing purchasing managers index (PMI) in the Peoples Republic of China f ell slightly to 50.7 points in July f rom 50.9 points in June.

09/02

Japans monetary base grew 15.0% y-o-y in July, dow n slightly f rom grow th in June of 17.0%.

09/05

Hong Kong, Chinas PMI rose to 51.4 points in July f rom 50.3 in June.

09/05

Exports f rom Indonesia grew 49.3% y-o-y to USD18.4 billion in June af ter rising 44.9% in May.

09/05

Singapores PMI f ell to 49.3 points in July f rom 50.4 in June.

Source: AsianBondsOnline, Bloomberg LP, and Reuters.

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DEBT HIGHLIGHTS

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News Articles: Sources for Further Reading

Tip: Click on link to open a new browser (Acrobat Reader 8); for lower versions right-click to open a new browser) Consumer Price Inflation Accelerates in Hong Kong, China; Japan; Singapore; and Viet Nam Consumer price indices for July 2011 Census and Statistics Department (22 August 2011) UPDATE 1-Japan CPI rises slightly but deflation to persist Reuters (25 August 2011) Singapore Consumer Price Index Singapore Department of Statistics (23 August 2011) Consumer price index, gold and USD price indexes, July 2011 General Statistics Office of Vietnam (23 August 2011) Vietnam's August CPI increases 0.93pct Intellasia (24 August 2011) Issuance in the Republic of Korea, Malaysia, Philippines, and Thailand Low rates lure Malaysian utilities back to bonds Reuters (24 August 2011) UCPB raises P3.15B from LTNCD issuance Philippine Star (24 August 2011) Data for KT Corp and Thailand's Quality Houses and State Railway of Thailand were extracted from Bloomberg terminal.

Thailand Raises Repurchase Rate 25 bps to 3.5% Monetary Policy Committee's Decision on 24 August 2011 Bank of Thailand (24 August 2011)

Japan Credit Rating Agency Affirms Indonesia's BBBRating; Moody's Lowers Japan's Credit Rating to Aa3; S&P Affirms AAA Credit Rating for Singapore Japan Credit Rating Agency , Ltd (JCR) Affirm Indonesia Sovereign Rating Bank Indonesia (24 August 2011) Moody's lowers Japan's government rating to Aa3; outlook stable Moody's (24 August 2011) S&P affirms 'AAA' credit rating for S'pore govt debt Channel News Asia (25 August 2011)

PBOC's Cross-Border Trade Renminbi Settlement Program Expands Nationwide China expands cross-border trade RMB settlement to whole nation China Knowledge (25 August 2011)

Republic of Korea's External Debt Rises to USD398 Billion in June, Household Loans Climb 8.7% in 2Q11, CDS Premiums Surge and Consumer Confidence Falls in August International Investment Position (end of June 2011) The Bank of Korea (23 August 2011) Household Credit in Q2 2011 The Bank of Korea (22 August 2011) S. Korea's CDS Premium Hits 15-Month High YONHAP News (25 August 2011) Consumer Survey Index, August 2011 The Bank of Korea (25 August 2011) Analysis of Direct Corporate Financing for July 2011 Financial Supervisory Service (23 August 2011)

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