3 October 2011

ong Kong, China's export growth moderated to 6.8% year-on-year (y-o-y) in August from 9.3% in July amid a weaker global economy. In the Republic of Korea, export growth in September eased to 19.6% y-o-y in September from 25.9% in August, while its current account surplus narrowed to USD0.4 billion in August from USD3.8 billion in July. The Philippines' trade deficit in July stood at USD570 million compared with USD183 million in July 2010. Thailand's trade surplus fell to USD705 million in August from USD2.7 billion in July as export growth eased and import growth surged. Viet Nam's exports rose 33.6% y-o-y in September while imports climbed 31.0% y-o-y. Viet Nam's cumulative GDP growth rate for January-September was reported at 5.8% y-o-y last week. The People's Republic of China's (PRC) Purchasing Managers' Index improved to 51.2 in September from 50.9 in August. Industrial production in Japan and the Republic of Korea expanded 0.6% and 4.8% y-o-y, respectively, in August. Factory output growth in the Philippines quickened to 6.8% y-o-y in July from 1.2% in June. Singapore's manufacturing output grew 21.7% y-o-y in August, largely due to strong growth in biomedical products. Consumer price inflation in Japan stood at 0.2% y-o-y in August, while in Viet Nam inflation reached 22.4% y-o-y in September on the back of a sharp rise in food prices. Last week, two banks in the Republic of Korea-Hana Bank and Woori Bank-issued 3year bonds worth THB8.0 billion and MYR315 million, respectively, while Malaysia's AmIslamic Bank priced MYR600 million of 10year subordinated notes. LCY corporate bond issuance in the Republic of Korea rose 27.1% month-on-month (m-o-m) in August, led by strong issuance growth in bank debentures and asset-backed securities. China Railway Construction announced last week its plan to issue CNY7.5 billion worth of medium-term notes. Shanghai Pudong Development Bank aims to sell CNY18.4 billion of subordinated debt. Indonesia plans to sell retail bonds with tenors of 3 years on 26 October. Krungthai Card intends to raise THB7.0 billion from a dual-tranche bond sale on 10 October. Thailand's Central Pattana aims to issue THB2 billion of 5-, 7-, and 10-year bonds. The PRC banking sector's assets grew 16.6% y-o-y to CNY104.4 trillion, while bank

Key Developments in Asian Local Currency Markets

asianbondsonline.adb.org

Asia Bond Monitor September 2011

10-Year Selected LCY Government Security Yields
Markets
Close of 30 September 2011

basis point change from Previous Week* 1-Jan-11* Latest Closing Previous Day*
1.92 1.89 1.03 3.93 1.27 8.43 6.92 3.70 3.95 5.86 1.62 3.69 12.67 -8.08 -12.00 3.20 0.00 0.70 1.10 -11.10 -0.50 5.00 -13.89 -3.00 -5.20 -3.30 8.20 8.20 14.00 14.00 4.50 4.50 -15.00 3.00 3.00 12.50 12.50 -44.20 -0.40 19.00 19.00 -43.89 11.00 11.00 -16.00 -3.30 -137.81 -107.60 -9.60 2.00 -159.10 50.90 -68.90 -33.60 -57.00 -2.70 -109.00 -3.40 91.70

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

-15.00

-44.20 -0.40

-43.89

-16.00 -3.30

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

liabilities rose 16.0% y-o-y to CNY97.8 trillion in August. Government bond yields fell for all tenors last week in the PRC and Indonesia and for most tenors in Thailand and Viet Nam. Yields rose for all tenors in Hong Kong, China; Republic of Korea; and Singapore, and for most tenors in Malaysia. Yield movements were mixed in the Philippines. Yield spreads between 2- and 10-year tenors widened in the PRC; Hong Kong, China; Republic of Korea; and Singapore, while spreads narrowed in most other emerging Asian markets. Finally, some of the more interesting economic data due this week include consumer price inflation for Republic of Korea and the Philippines; export growth and trade balance for Malaysia; money supply for Japan and Indonesia; and foreign reserves for Hong Kong, China and the Philippines.

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Summary Text of News Articles Hong Kong, China's Export Growth Moderated in August; Republic of Korea's Export Growth Eased in September, Current Account Surplus Narrows in August; Philippines Records Higher Trade Deficit in July; Thailand Registers Lower Trade Surplus in August; Viet Nam Posts USD1 Billion Trade Deficit in September

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Hong Kong, China's export growth moderated to 6.8% year-on-year (y-o-y) in August from 9.3% in July. In contrast, imports grew at a more rapid pace of 14.1% y-o-y in August compared with 10.2% in July. The total value of exports in August was HKD309.9 billion, while imports were HKD344.7 billion, resulting in a trade deficit of HKD34.8 billion. In January-August exports grew 13.3% y-o-y while imports grew 14.3% y-o-y, resulting in a trade deficit of HKD271.1 billion. According to the government, export growth was affected by weakness in the global economy but exports to a select few Asian economies remained strong, including the Japanese market, which has seen a modest recovery. On the other hand, exports to the United States (US) fell for the fourth straight month. The Republic of Korea's export growth in September eased to 19.6% y-o-y from 25.9% in August. On the other hand, import growth rose to 30.5% y-o-y in September from 28.9% in August. The trade surplus in September reached USD1.4 billion, up from the previous month's surplus of USD479 million. Meanwhile, the country's current account surplus narrowed sharply in August-to USD0.4 billion from USD3.8 billion in July-on the back of a large contraction in the trade surplus as exports dropped and imports increased. Also, the services account deficit fell to USD0.6 billion, the primary income surplus widened to USD0.7 billion, and the secondary income deficit fell to USD0.2 billion. In the Philippines, the National Statistics Office reported that total merchandise imports for July were estimated at USD5.0 billion, up 6.6% y-o-y. The annual import growth rate for July was similar to June. On a month-on-month (m-om) basis, imports increased 11.0% from the previous month's USD4.5 billion. The trade deficit was USD570 million in July, higher than the July 2010 deficit of USD183 million. Mineral fuels, lubricants, and related materials, which accounted for 26.3% of the total import bill, were the country's leading importable commodity at USD1.3 billion, up 82.6% y-o-y. The People's Republic of China (PRC) was the largest source of Philippine imports, accounting for 11.5% of the total, followed by Japan (9.6%), the US (9.2%), the United Arab Emirates (8.2%), and Singapore (7.2%). Thailand's export growth eased to 28.4% y-o-y in August from 36.4% in July. In contrast, import growth accelerated to 45.9% y-o-y for the month from 13.1% in the previous month. As a result, the trade surplus fell to USD705 million in August from USD2.7 billion in July. Viet Nam's export in September reached USD8.3 billion while imports amounted to USD9.3 billion, leaving a trade deficit of USD1.0 billion for the month. Exports soared 33.6% y-o-y, but were down 10.2% m-o-m. Imports increased 31.0% y-o-y but fell 3.6% m-o-m. For statistics on the Republic of Korea's export and import growth rates as well as current account balance, refer to this link: http://asianbondsonline.adb.org/korea/data/macroeconomic_credit.php For statistics on the Philippines' import growth rate, refer to this link: http://asianbondsonline.adb.org/philippines/data/macroeconomic_credit.php For statistics on Viet Nam's export growth rate, refer to this link: http://asianbondsonline.adb.org/vietnam/data/macroeconomic_credit.php

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Viet Nam's GDP Grows 5.8% y-o-y in January-September; The PRC's Purchasing Managers' Index Improves in September; Industrial Production Grows 4.8% y-o-y in the Republic of Korea and 0.6% y-o-y in Japan in August; Philippines' Factory Output Growth Quickens in July; Singapore's Manufacturing Output Expands in August

Viet Nam's cumulative gross domestic product (GDP) for the first 9 months of the year is estimated to have grown by 5.8% y-o-y, which is slightly higher than the 5.6% y-o-y growth recorded in the first 6 months of the year. In JanuarySeptember, the agriculture, forestry, and fishery sector, which comprises 21.5% of GDP, grew 2.4% y-o-y; the industry and construction sector (40.7% of GDP) expanded 6.6% y-o-y; and the service sector (37.8% of GDP) grew 6.2% y-o-y.

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Summary Text of News Articles Viet Nam's GDP Grows 5.8% y-o-y in January-September; The PRC's Purchasing Managers' Index Improves in September; Industrial Production Grows 4.8% y-o-y in the Republic of Korea and 0.6% y-o-y in Japan in August; Philippines' Factory Output Growth Quickens in July; Singapore's Manufacturing Output Expands in August (cont)

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The Purchasing Managers' Index (PMI) of the People's Republic of China (PRC) rose to 51.2 in September from 50.9 in August. Industrial production in the Republic of Korea expanded 4.8% y-o-y in August after rising 4.0% in the previous month. However, on a m-o-m basis the country's industrial output contracted 1.9% in August. In Japan, factory output rose 0.8% m-o-m in August-improving from July's growth of 0.4%-but lower than the expected growth of 1.5%. Weakening global demand and the strong yen slowed the recovery. On a y-o-y basis, industrial production grew 0.6% in August in an improvement from July's decline of 3.0%. Factory output growth in the Philippines, as measured by changes in the volume of production index, quickened to 6.8% y-o-y in July from a revised 1.2% in June. The July output growth figure was down significantly from 21.7% y-o-y growth in July 2010. The furniture and fixtures sector led all gainers in climbing 134.7% y-o-y. The heavily-weighted electrical machinery and petroleum products indices also hiked production by 5.7% and 1.7% y-o-y, respectively. Meanwhile, the index that measures production in terms of value increased 6.7% y-o-y-an improvement from revised 3.5% growth in June. Average capacity utilization was estimated at 83.3%, with only 15.7% of the total number of establishments surveyed operating at full capacity. According to the Economic Development Board, Singapore's manufacturing output rose 21.7% y-o-y in August, largely due to the biomedical manufacturing cluster, which surged 145.8% y-o-y. Excluding growth in biomedical products, manufacturing output actually declined 10.7% y-o-y in August. On a seasonally adjusted m-o-m basis, manufacturing output increased 3.9% for the month. The precision engineering and transport engineering clusters grew 4.1% and 1.2% y-o-y, respectively, while the chemicals cluster contracted 1.2% y-o-y in August. Meanwhile, the electronics and general manufacturing clusters posted significant declines of 21.9% and 8.0% y-o-y, respectively. Electronics output fell 4.1% y-o-y during the first 8 months of 2011, mainly due to weak external demand. For statistics on Viet Nam's real GDP growth rate, refer to this link: http://asianbondsonline.adb.org/vietnam/data/macroeconomic_credit.php For statistics on Japan's industrial production growth rate, refer to this link: http://asianbondsonline.adb.org/japan/data/macroeconomic_credit.php

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Consumer Price Inflation at 0.2% y-o-y in Japan in August and 22.4% y-o-y in Viet Nam in September

Consumer price inflation in Japan stood at 0.2% y-o-y and 0.1% m-o-m in August. Fuel, light, and water and miscellaneous items recorded the highest annual increases at 3.5% and 5.3% y-o-y, respectively. On a monthly basis, culture and recreation costs rose 1.1%; fuel, light, and water charges increased 0.6%; and transportation and communication costs climbed 0.5%. Services costs also grew 0.3% from the previous year and 0.4% from the previous month. Viet Nam's consumer price inflation in September was 22.4% y-o-y, slightly lower than 23.0% in August, while rising 0.8% m-o-m. The largest price increase was seen in food, which soared 37.9% y-o-y, followed by housing and construction materials, which gained 22.9%. Prices in the education and transport indices went up substantially as well with increases of 21.4% and 20.1% y-o-y, respectively. For consumer price inflation trends on Japan, refer to this link: http://asianbondsonline.adb.org/japan/data/marketwatch.php?code=policy_rate_and_inflation_trends For consumer price inflation trends on Viet Nam, refer to this link: http://asianbondsonline.adb.org/vietnam/data/marketwatch.php?code=policy_rate_and_inflation_trends

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Summary Text of News Articles Hana Bank Sells THB8 Billion 3-Year Bond; Woori Bank Issues MYR315 Million 3-Year Bond; AmIslamic Bank Prices MYR600 Million 10-Year Subordinated Debt

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Hana Bank in the Republic of Korea issued a THB8.0 billion 3-year bond at a coupon rate of 4.68% last week, while Woori Bank issued a MYR315 million 3-year bond with a 4.2% coupon. Meanwhile, Malaysia's AmIslamic Bank priced MYR600 million of 10-year subordinated notes. The notes, issued under AmIslamic Bank's MYR2.0 billion Subordinated Sukuk Musyarakah Programme, carry an annual return of 4.4%. The issuance, which qualifies as Lower Tier 2 paper, was rated A1 by RAM Ratings.

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LCY Corporate Bond Issuance Rises 27.1% m-o-m in the Republic of Korea in August

The Financial Supervisory Service reported that total local currency (LCY) corporate bond issuance in the Republic of Korea climbed 27.1% m-o-m to KRW10.3 trillion in August. This was led by a 386.6% m-o-m surge in the issuance of asset-backed securities, which stood at KRW1.0 trillion for the month, as well as a 125.1% m-o-m jump in the issuance of bank debentures, which reached KRW2.7 trillion. Issuance of non-financial corporate bonds also rose 7.1% m-o-m to KRW4.3 trillion in August whereas bond issuance by financial companies dropped 14.4% m-o-m to level off at KRW2.3 trillion.

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China Railway Construction Plans CNY7.5 Billion Medium-Term Note Sale; Shanghai Pudong Development Bank Plans CNY18.4 Billion Subordinated Debt Issuance; Indonesia Plans Retail Bond Sale; Krungthai Card to Issue THB7.0 Billion of Dual-Tranche Bonds; Central Pattana Plans THB2.0 Billion of 5-, 7-, 10-year Bond Sale

Last week, China Railway Construction announced that it will issue CNY7.5 billion in medium-term notes. The notes will have a maturity of 7 years. Also, Shanghai Pudong Development Bank said it will issue CNY18.4 billion worth of subordinated bonds with a maturity of 15 years. Meanwhile, the Indonesian government plans to sell its eight series (ORI008) of retail bonds on 26 October. The ORI008 bonds will carry a maturity of 3 years. In Thailand, Krungthai Card plans to raise THB7.0 billion from a dualtranche bond sale on 10 October. This includes a 3-year bond worth THB6.0 billion with a 5.5% coupon and a THB1.0 billion 4-year bond that pays 5.5% in the first 3 years and 6.0% in the final year. Also, Thailand's Central Pattana aims to issue THB2 billion of 5-, 7-, and 10-year bonds.

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The PRC's Banks Assets Grow 16.6% y-o-y in August

The total assets of the People's Republic of China's (PRC) banking sector grew 16.6% y-o-y to reach CNY104.4 trillion in August, according to the China Regulatory Banking Commission. Meanwhile, bank liabilities grew 16.0% y-o-y to CNY97.8 trillion in August.

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Selected Government Security Yields

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3-Month Selected LCY Government Security Yields

Latest Closing 0.02 0.38 0.10 3.44 0.11 8.42 3.03 3.31 2.75 0.22 3.49 basis point change from Previous Previous 1-Jan-11* Day* Week* 2.54 1.01 2.54 -9.94 2.10 -0.70 2.10 -1.30 0.00 0.00 0.00 -2.40 -2.00 -11.00 -11.00 26.00 1.00 1.00 1.00 -17.00 2.00 0.00 2.00 132.00 2.10 0.80 2.10 24.80 4.00 4.00 0.00 80.00 5.00 84.48 84.48 155.00 3.00 0.00 3.00 -17.00 1.67 0.17 1.67 151.67

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

Close of 30 September 2011

10-Year Selected LCY Government Bond Yields

Latest Closing 1.92 1.89 1.03 3.93 1.27 8.43 6.92 3.70 3.95 5.86 1.62 3.69 12.67 basis point change from Previous Previous 1-Jan-11* Day* Week* -8.08 8.20 8.20 -137.81 -12.00 14.00 14.00 -107.60 3.20 4.504.50 -9.60 -15.00 -15.00 0.00 2.00 3.00 0.70 3.00 -159.10 1.10 12.50 12.50 50.90 -11.10 -44.20 -44.20 -68.90 -0.40 -0.50 -0.40 -33.60 5.00 19.00 19.00 -57.00 -13.89 -43.89 -43.89 -2.70 -3.00 11.00 11.00 -109.00 -16.00 -16.00 -5.20 -3.40 -3.30 -3.30 -3.30 91.70

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

Close of 30 September 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 2.0

Hong Kong, China

9.0 8.0
Yield (%)

4.00
Yield (%)
Yield (%)

1.5

7.0 6.0 5.0 4.0

3.75

1.0

3.50

0.5

3.25 0 1 2 3 4 5 6 7 8 9 10 11 12

0.0 0 2 4 6 8 10 12 14 16

12

15

18

21

24

27

30

33

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Korea, Republic of
4.25 4.00 3.75 3.50 3.25 3.00 0 2 4 6 8 10 12 14 16 18 20 22 4.2 4.0 3.8
Yield (%)
Yield (%)

Malaysia
8.0 7.0 6.0
Yield (%)

Philippines

3.6 3.4 3.2 3.0 2.8 0 2 4 6 8 10 12 14 16 18 20 22

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)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Singapore
2.5 2.0 1.5 1.0 0.5 0.0 0 3 6 9 12 15 18 21
4.3

Thailand
13.0

Viet Nam

4.0
Yield (%) Yield (%)

12.8

Yield (%)

3.8

12.5

3.5

12.3

3.3 0 2 4 6 8 10 12 14 16

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

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

US
3.5 3.0 2.5
Yield (%)
3.0 2.5 2.0

EU
2.5 2.3 2.0 1.8
Yield (%)

Japan

Yield (%)

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

1.5 1.3 1.0 0.8 0.5 0.3 0.0

1.5 1.0 0.5 0.0 0 5 10 15 20 25 30

12

16

20

24

28

32

36

40

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-11

Time to maturity (years)

30-Sep-11 23-Sep-11 16-Sep-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

30-Sep-11

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

23-Sep-11 16-Sep-11

350

400

basis points

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-06 Inflation Rate -2 -4 Jan-06 1-year Lending Rate 6.56 6.20 6 4 8

Hong Kong, China

12 10 8 6 4 Inflation Rate 2 0 -2 Jan-06 Repurchase Cut-off Yield

5.7 HKMA Base Rate Inflation Rate

9.78 8.25

0.5

Dec-06

Nov-07

Nov-08

Oct-0 9

Sep-10

Sep-11

Dec-06

Nov-07

Nov-08

Oct-0 9

Sep-10

Sep-11

Dec-06

Nov-07

Nov-08

Oct-0 9

Sep-10

Sep-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 16 14 12 10 8 6 4 2 0 Jan-06 Dec-06 Nov-07 Nov-08 Oct-0 9 Sep-10 Sep-11 0 Jan-06 Dec-06 Inflation Rate 6.75 4.79 2 4 BI Rate 6 8

Korea, Republic of
10
c

Malaysia

7-Day Repo Rate

8 6 5.30 4 3.25 2 0

Overnight Policy Rate

3.30 3.00

Inflation Rate

-2 -4 Jan-06

Inflation Rate

Nov-07

Nov-08

Oct-0 9

Sep-10

Sep-11

Dec-06

Nov-07

Nov-08

Oct-0 9

Sep-10

Sep-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 4.70 4 2 0 Jan-06 4.50 0 -2 Overnight Reverse Repo Rate 10 8 Inflation Rate 6 4 2 1-Day Repo Rate

Thailand
30 Inflation Rate 27 24 4.29 3.50 21 18 15 12 9 6 -4 -6 Jan-06 3 Dec-06 Nov-07 Nov-08 Oct-0 9 Sep-10 Sep-11 0 Jan-06 Dec-06 Nov-07 Prime Lending Rate

Viet Nam

Inflation Rate 22.42

9.00

Dec-06

Nov-07

Nov-08

Oct-0 9

Sep-10

Sep-11

Nov-08

Oct-0 9

Sep-10

Sep-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
China , P e ople 's Re p. of

Hong Kong, China

1,200
Indone s ia

Kore a , Re 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

No v-08

O ct-09

O ct-10

S e p -11

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

130 130
China , P e ople 's Re 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 Na m

80

80

70

70

60

60

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

50 Jan - 07

50 A u g -07 M ar-08 O ct- 08 M ay-09 D ec-09 Ju l-10 Jan - 11 Sep -11

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Selected Debt Security Issuances (26 - 30 September 2011)

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Mark ets
PRC HK ID

A u c tio n D ate
27-Sep 29-Sep 27-Sep 27-Sep

T y p e o f S ec u rity
1-year PBOC Bills 3-month PBOC Bills 90-day Exchange Fund Bills 182-day Exchange Fund Bills 3-month Treasury Bills 1-year Treasury Bills 5-year Treasury Bonds 11-year Treasury Bonds 21-year Treasury Bonds

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 3.16 0.11 0.12 5.23 5.25 6.48 7.57 7.84 0.13 0.10 3.33 3.49 3.91 3.04 3.02 3.02 3.58 3.04 3.03 3.01 7.51 0.15 3.49 3.50 3.58 3.66 7.63 4.75 0.10 2,600.00 5,000.00 1,200.00 800.00 1,000.00 2.00 2.00 2.00 3.50 1.50 2.00 1.00 9.00 3.90 15.00 20.00 18.00 9.00 5,000.00 2.00 2.00 28.41 9.00 2.00 2.00 28.41 9.00 150.00 350.00 1,000.00 1,150.00 1,500.00 2,598.17 5,099.89 1,170.00 750.00 1,000.20 1.50 1.00 1.00 3.50 1.00 1.00 1.00 9.00 3.90 15.00 20.00 18.00 9.00

JP KR

27-Sep 28-Sep 26-Sep

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

MY

26-Sep

91-day BNM Islamic Notes 170-day BNM Notes 261-day BNM Notes

27-Sep 28-Sep

7-year Malaysian Government Securities 63-day BNM Islamic Notes 105-day BNM Notes 210-day BNM Notes

PH SG TH

28-Sep 26-Sep 27-Sep

25-year Fixed Rate Treasury Notes 91-day Treasury Bills 28-day BOT Bills 91-day BOT Bills 182-day BOT Bills

28-Sep

6-year Treasury Bonds

Sources: Local market sources and Bloomberg, LP.

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Selected Asia Data Releases (4 - 10 October 2011)

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C o u n tr y /V a r ia b le
Jap an M o n e tar y Bas e y -o-y , % SEP Re p u b lic o f Ko r e a CPI y -o-y , % SEP Sin g ap o r e Pu r ch as in g M an ag e r s In d e x Index SEP Ph ilip p in e s CPI y -o-y , % SEP M alays ia Exp o r ts y -o-y , % A UG M alays ia T r ad e Balan ce MY R billion A UG Ho n g Ko n g , Ch in a Fo r e ig n Re s e r ve s USD billion SEP Jap an BOJ T ar g e t Rate % OCT 7 Ph ilip p in e s Fo r e ig n Re s e r ve s USD billion SEP In d o n e s ia M 2 M o n e y Su p p ly y -o-y , % A UG

R e le a s e D a te
10/04

H is to r ic a l D a ta
08/10: 5.4% 09/10: 5.8% 07/11: 15.0% 08/11: 15.9% 08/10: 2.6% 09/10: 3.6% 07/11: 4.7% 08/11: 5.3% 08/10: 49.4 09/10: 49.5 07/11: 49.3 08/11: 49.4 08/10: 4.0% 09/10: 3.9% 07/11: 5.1% 08/11: 4.7% 07/10: 12.4% 08/10: 9.4% 06/11: 9.6% 07/11: 7.1% 07/10: 7.1 08/10: 8.3 06/11: 7.9 07/11: 9.5 08/10: 261.4 09/10: 266.1 07/11: 278.8 08/11: 279.4 09/10: 0.1% 10/10: 0.1% 08/11: 0.1% 09/11: 0.1% 08/10: 49.9 09/10: 53.8 07/11: 71.9 08/11: 76.0 07/10: 13.1% 08/10: 12.1% 06/11: 13.1% 07/11: 15.7%

R ec en t T ren d s
Japans monetary bas e grew 15.9% y ear-on-y ear (y -o-y ) in A ugus t f ollow ing a 15.0% inc reas e in July .

10/04

Cons umer pric e inf lation in the Republic of Korea ac c elerated to 5.3% y -o-y in A ugus t f rom 4.7% in July .

10/04

Singapores Purc has ing Managers Index (PMI) ros e s lightly to 49.4 in A ugus t f rom 49.3 in the prev ious month.

10/05

The Philippines c ons umer pric e inf lation rate dec reas ed 0.4 perc entage points f rom the prev ious month to 4.7% y -o-y in A ugus t.

10/06

Malay s ias ex port grow th eas ed to 7.1% y -o-y in July f rom 9.6% in June.

10/06

Malay s ias trade s urplus inc reas ed to MY R9.5 billion in July f rom MY R7.9 billion in June.

10/07

Hong Kong, Chinas f oreign res erv es ros e s lightly to USD279.4 billion in A ugus t f rom USD278.8 billion in July .

10/07

The Bank of Japans (BOJ) target rate remained unc hanged at 0.1% in September.

10/07

The f oreign res erv es of the Philippines inc reas ed to USD76.0 billion in A ugus t f rom USD71.9 billion in the prev ious month.

10/07 to 10/13

M2 money s upply grow th in Indones ia c limbed to 15.7% y -o-y in July f rom 13.1% in the prev ious month.

S ourc e: A s ianB onds Online, B loom berg LP , and Reuters .

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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) Hong Kong, Chinas Export Growth Moderated in August; Republic of Koreas Export Growth Eased in September, Current Account Surplus Narrows in August; Philippines Records Higher Trade Deficit in July; Thailand Registers Lower Trade Surplus in August; Viet Nam Posts USD1 Billion Trade Deficit in September External Merchandise Trade Statistics for August 2011 Census and Statistics Department (27 September 2011) S. Korea Export Growth Eases to 3-Month Low as Global Slowdown Saps Demand Bloomberg (01 October 2011) Balance of Payments during August 2011 The Bank of Korea (29 September 2011) External Trade Performance July 2011 National Statistics Office (28 September 2011) General Statistics Office of Viet Nam Social and Economic Situation, 9 Months of 2011 (28 September 2011) Hana Bank Sells THB8 Billion 3-Year Bond; Woori Bank Issues MYR315 Million 3-Year Bond; AmIslamic Bank Prices MYR600 Million 10-Year Subordinated Debt AmIslamic Bank prices M$600m Lower Tier 2 issue IFR Asia (27 September 2011)

LCY Corporate Bond Issuance Rises 27.1% m-o-m in the Republic of Korea in August Analysis of Direct Corporate Financing for August 2011 Financial Supervisory Service (29 September 2011)

China Railway Construction Plans CNY7.5 Billion Medium-Term Note Sale; Shanghai Pudong Development Bank Plans CNY18.4 Billion Subordinated Debt Issuance; Indonesia Plans Retail Bond Sale; Krungthai Card to Issue THB7.0 Billion of Dual-Tranche Bonds; Central Pattana Plans THB2.0 Billion of 5-, 7-, 10-year Bond Sale Shanghai Pudong Dev. Bank to issue RMB 18.4 bln in bonds China Knowledge (29 September 2011) China Railway Construction to issue RMB 7.5 bln in notes China Knowledge (27 September 2011) Indonesia to Sell Retail Bonds Oct. 26, Finance Ministry Says Bloomberg BusinessWeek (28 September 2011) BONDS: Krungthai Card Plans Bt7bn Bond IFR Asia (27 September 2011) Central Pattana Plans Issue IFR Asia (30 September 2011)

Viet Nams GDP Grows 5.8% y-o-y in January September; The PRCs Purchasing Managers Index Improves in September; Industrial Production Grows 4.8% y-o-y in the Republic of Korea and 0.6% y-o-y in Japan in August; Philippines Factory Output Growth Quickens in July; Singapores Manufacturing Output Expands in August China Manufacturing Counters Hard Landing Bloomberg (02 October 2011) General Statistics Office of Viet Nam Social and Economic Situation, 9 Months of 2011 (28 September 2011) Japan Factory Output Disappoints Reuters (29 September 2011) The Industrial Activities in August 2011s Statistics Korea (30 September 2011) Monthly Integrated Survey of Selected Industries July 2011 National Statistics Office (29 September 2011) Monthly Manufacturing Performance August 2011 Economic Development Board (26 September 2011)

The PRCs Banks Assets Grow 16.6% y-o-y in August PRC's Banking Industry's Assets Hit RMB 104.44 trln by end-Aug China Knowledge (27 September 2011)

Consumer Price Inflation at 0.2% y-o-y in Japan in August and 22.4% y-o-y in Viet Nam in September Japan August 2011, Ku-area of Tokyo September 2011 (preliminary) Ministry of Internal Affairs and Communications (30 September 2011) General Statistics Office of Viet Nam Social and Economic Situation, 9 Months of 2011 (28 September 2011)

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