10 December 2012 asianbondsonline.adb.org

……………………………………………………………………………………………………………..……………..……

Key Developments in Asian Local Currency Markets

1

Asia Bond Monitor November 2012 read more

10-Year Selected LCY Government Security Yields Close of 7 December 2012 basis point change from

Markets Latest Closing Previous Day* Previous Week* 1-Jan-12*

Selected Benchmark Yield Curves — Local Currency Government

Policy Rate versus Inflation Rate Charts

Government Security Yields

Credit Default Swap Spreads and Exchange Rate IndexesSelected Debt Security Issuances Selected Asia Data Releases

2- versus 10- Year Yield Spread Chart

n 4 December, the Bank of Japan (BOJ) and Reserve Bank of India (RBI) signed a 3-year bilateral currency swap agreement with a maximum value of US$15 billion. The arrangement seeks to address short-term liquidity difficulties, supplement existing international financial arrangements, and help prevent excessive volatility in their respective foreign exchange markets. The agreement will further strengthen economic and financial

cooperation between Japan and India.

The Bank of Korea and the People's Bank of China decided last week to introduce a facility in which the proceeds of the CNY360 billion-KRW64 trillion currency swap arrangement between the People's Republic of China (PRC) and the Republic of Korea will be used to support bilateral trade settlement between the two countries.

The China Banking Regulatory Commission (CBRC) announced last week, as part of preparations for implementing Basel 3 requirements, that large systemically important banks must have a capital adequacy ratio (CAR) of at least 9.5% by the end of 2013. They must also have a minimum Tier 1 CAR of 7.5% and Core Tier 1 CAR at 6.5%. Other banks must keep their ratios in a range of between 5.5% and 8.5%.

Bank Indonesia (BI) announced new capital requirements for banks last week as part of efforts to strengthen the banking system. Beginning March 2013, banks will be required to maintain a CAR of between 8% and 14%, depending on their risk profiles. Currently, the CAR for all banks is set at 8%.

The Republic of Korea's real gross domestic product (GDP) growth rate stood at 0.1% quarter-on-quarter (q-o-q) in 3Q12, based on preliminary estimates of The Bank of Korea. The PRC's non-manufacturing purchasing managers' index (PMI) hit a 3-month high in November of 55.6 from 55.5 in October. In Hong Kong, China, the PMI rose to 52.2 in November from 50.5 in October. A PMI reading above 50 indicates an expansion of activity, while a reading below 50 indicates a contraction.

Consumer price inflation eased in November on a year-on-year basis in Indonesia (4.3%), the Philippines (2.8%), and Thailand (2.7%), while it accelerated in the PRC (2.0%).

Net foreign investment inflow into the Republic of Korea's listed local currency (LCY)

bonds stood at KRW267 billion in November, based on Financial Supervisory Service (FSS) data. The largest net investment inflows came from Hong Kong, China at KRW934 billion, followed by the United States (US) at KRW355 billion and Norway at KRW250 billion.

China Lonyuan Power Group (US$400 million) and Shui On Land (US$500 million) each issued perpetual bonds last week. Also, China Cinda Asset Management issued a 3-year CNH2 billion bond last week. Latin American development bank, Corporacion Andina de Fomento issued a CNH600 million bond. The Viet Nam Development Bank sold VND2.9 trillion worth of government-guaranteed bonds in 3 tranches at yields between 10.5%-10.8% p.a.

Government bond yields fell last week for most tenors in Hong Kong, China; Indonesia; the Republic of Korea; the Philippines; Singapore and Thailand, while yields rose for most tenors in the PRC and Malaysia. Yield movements were mostly unchanged in Viet Nam. Yield spreads between 2- and 10- year maturities widened in Indonesia, the Republic of Korea, Malaysia and Singapore, while spreads remained unchanged in Viet Nam, and narrowed in other emerging East Asian markets.

O

US 1.62 3.58 0.59 -25.47EU 1.30 -0.10 -9.10 -53.40Japan 0.71 1.00 -1.10 -28.30PRC 3.56 1.00 2.00 12.00Hong Kong, China 0.56 -1.90 -0.40 -90.90India 8.17 0.10 -0.40 -39.50Indonesia 5.38 -0.20 -0.20 -65.20Korea, Rep. of 3.06 -1.00 3.00 -73.00Malaysia 3.52 2.60 2.50 -18.00Philippines 4.15 -4.68 -24.39 -93.39Singapore 1.30 -1.00 0.00 -33.00Thailand 3.52 1.80 -3.40 23.10Viet Nam 10.20 0.00 0.00 -230.00

0.59

-9.10

-1.10

2.00

-0.40

-0.40

-0.20

3.00

2.50

-24.39

0.00

-3.40

0.00

………………………………………………………………………………………..……………………………..……...…

asianbondsonline.adb.org………………………………………………………………………..………………………………………………….......

DEBT HIGHLIGHTSASIANBONDSONLINE

2

Summary Text of News Articles

BOJ and RBI Sign Currency Swap Agreement ....................................................................................................................... On 4 December, the Bank of Japan (BOJ) and Reserve Bank of India (RBI) signed a 3-year bilateral currency swap agreement with a maximum value of US$15 billion. The arrangement seeks to address short-term liquidity difficulties, supplement existing international financial arrangements, and shield against excessive volatility in foreign exchange markets. The agreement will strengthen economic and financial cooperation between Japan and India. The two countries signed a similar agreement that was effective June 2008-June 2011 for an amount of US$3 billion.

Currency-Swap-Financed Trade Settlement Facility between the PRC and Republic of Korea Introduced ....................................................................................................................... The Bank of Korea and the People's Bank of China (PBOC) decided last week to introduce a facility in which the proceeds of the CNY360 billion-KRW64 trillion currency swap arrangement between the People's Republic of China (PRC) and the Republic of Korea will be used to support bilateral trade settlement between the two countries. Under this facility, The Bank of Korea will lend its CNY-denominated currency swap proceeds to banks in the Republic of Korea in order to support Korean firms' CNY-denominated payments for trade settlement with the PRC. The PBOC will lend its KRW-denominated currency swap proceeds to banks in the PRC to support PRC firms' KRW-denominated payments for trade settlement with the Republic of Korea.

The PRC to Implement Pilot System for Monitoring Capital Flows ....................................................................................................................... The State Administration of Foreign Exchange (SAFE) said last week that it would start a pilot program in Liaoning, Zhejiang (excluding Ningbo), Shaanxi, and Dalian that will update the data collection system for capital transactions. The program will start on 14 January. It will cover all capital account business processed by foreign exchange regulators, as well as those processed by banks for enterprises and individuals in the above mentioned regions. SAFE said that the move would help facilitate capital account transactions and strengthen monitoring of cross-border capital flows.

CBRC Increases Capital Requirements of Banks ....................................................................................................................... The China Banking Regulatory Commission (CBRC) announced last week, as part of preparations for implementing Basel 3 requirements, that large systemically important banks must have a capital adequacy ratio (CAR) of at least 9.5% by the end of 2013. They must also have a minimum Tier 1 CAR of 7.5% and Core Tier 1 CAR at 6.5%. Other banks must keep their ratios in a range of between 5.5% and 8.5%. Banks must also keep a reserve capital of 2.5% of risk assets by the end of 2018.

BI Announces New Capital Adequacy Ratios for Banks ....................................................................................................................... Bank Indonesia (BI) announced last week new capital requirements for banks as part of efforts to strengthen the banking system. Beginning March 2013, banks will be required to maintain a CAR of between 8% and 14%, depending on their risk profiles. Currently, the CAR for all banks is set at 8%. Based on the new regulation, banks with a low risk profile will continue to maintain an 8% CAR. Banks with a second-level risk profile will be required to maintain a CAR of 9%-10%, and those with a third-level risk profile will be required to maintain a ratio of 10%-11%. High-risk banks (fourth- and fifth-level risk profiles) will be required to maintain a CAR of 11%-14%. BI also set a special requirement, known as a capital equivalency maintained asset (CEMA), for foreign banks operating in Indonesia.

The Republic of Korea's GDP Growth Rate for 3Q12 Revised Downward; PRC's Non-Manufacturing PMI Rises to 55.6 in November;

Hong Kong, China's PMI Rises to 52.2 in November ....................................................................................................................... The Republic of Korea's real gross domestic product (GDP) growth rate stood at 0.1% quarter-on-quarter (q-o-q) in 3Q12, based on preliminary estimates of The Bank of Korea. This was 0.1 percentage point lower than the central bank's advance estimates, which were released on 26 October. The year-on-year (y-o-y) real GDP growth rate for 3Q12 was also revised downward to 1.5% from 1.6%.

………………………………………………………………………………………………………………………..……….

………………………………………………………………………………………………………………………..….......asianbondsonline.adb.org DEBT HIGHLIGHTSASIANBONDSONLINE

3

Summary Text of News Articles

The Republic of Korea's GDP Growth Rate for 3Q12 Revised Downward; PRC's Non-Manufacturing PMI Rises to 55.6 in November;

Hong Kong, China's PMI Rises to 52.2 in November (cont…) ....................................................................................................................... The PRC's non-manufacturing Purchasing Managers' Index (PMI) hit a 3-month high in November of 55.6 from 55.5 in October. In Hong Kong, China, the PMI rose to 52.2 in November from 50.5 in October. A PMI reading above 50 indicates an expansion in activity while a reading below 50 indicates a contraction.

Consumer Price Inflation Eases in Indonesia, the Philippines, and Thailand. Accelerates in the PRC ....................................................................................................................... Consumer price inflation slowed in Indonesia to 4.3% y-o-y in November, compared with 4.6% a month earlier, on lower prices for food and clothing, and housing-related costs. On a month-on-month (m-o-m) basis, inflation rose 0.07% in November from 0.16% in October.

The Philippines' inflation rate fell to 2.8% y-o-y in November from 3.1% in October. The lower inflation rate was driven by a slowdown in price increases for food and non-alcoholic beverages; housing, water, electricity, gas, and other fuels; and transport. Prices for food and alcoholic beverages rose 2.2% in November from a 2.5% increase in October. Housing, water, electricity, gas, and other fuels rose 3.8% in November from 4.5% a month earlier, while transport prices rose 1.3% from 1.7%.

Consumer price inflation in Thailand decelerated to 2.7% y-o-y in November from 3.3% in October. The price index for food and non-alcoholic beverages rose 1.9% in November, compared with a 3.4% hike in the previous month. Meanwhile, prices for non-food and beverage items increased 3.3% for the second consecutive month in November. On a monthly basis, consumer prices fell 0.35% in November.

Meanwhile, consumer price inflation in the PRC rose to 2.0% y-o-y in November from 1.7% in October. The rise in consumer prices was due to mainly to an increase in food prices. Food prices rose 3.0% y-o-y in November.

Net Foreign Investment in the Republic of Korea's LCY Bonds Totals KRW267 Billion in November ....................................................................................................................... Net foreign investment in the Republic of Korea's listed local currency (LCY) bonds stood at KRW267 billion in November, which was lower than the net investment amount of KRW361 billion in October, based on Financial Supervisory Service (FSS) data. The largest net investment inflow amounts for listed bonds in the Republic of Korea came from Hong Kong, China at KRW934 billion, followed by the United States (US) at KRW355 billion and Norway at KRW250 billion. On the other hand, the three largest net bond investment outflow amounts came from Germany (KRW308 billion), Thailand (KRW302 billion), and the United Kingdom (KRW218 billion). As of end-November, US investors remained the largest holder of listed bonds in the Republic of Korea, accounting for KRW17.3 trillion, or 19.4% of the total, followed by Luxembourg and the PRC with shares of 15.9% and 12.2%, respectively.

China Longyuan Power and Shui On Land Issue US$ Perpetual Bonds; China Cinda Asset Management and Corporacion Andina de Fomento Issue CNH Bonds .......................................................................................................................

China Longyuan Power Group last week issued a US$ perpetual bond that is callable after 3 years. The size of the bond is US$400 million and the initial coupon is 5.25%. After 3 years, it will be reset to its original spread of 491.21 basis points (bps) plus the 3-year US Treasury rate, in addition to a 500 bps step-up spread. Shui On Land also issued a US$500 million perpetual bond at a coupon rate of 10.125% that is callable after 5 years. If the bond is not called, there will be a step-up spread of 300 bps.

China Cinda Asset Management issued a 3-year CNH2 billion bond at a coupon of 4.0% last week. The bond is the first CNH bond from a PRC asset management company. Demand for the bond was at CNH4.5 billion, with Asian investors taking 99% of the offering.

Finally, Latin American development bank Corporacion Andina de Fomento issued a 3-year CNH600 million bond at a coupon of 3.55%.

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

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

4

Tip: Zoom-in on the table using the Acrobat zoom tool Selected Government Security Yields

3-Month Selected LCY Government Security Yields

10-Year Selected LCY Government Bond Yields

Close of 7 December 2012

Close of 7 December 2012

EU = European Union, LCY =local currency, PRC = People’s Republic of China, US = United States. Source: Based on data from Bloomberg, LP.

PreviousDay*

PreviousWeek* 1-Jan-12*

US 0.08 -1.02 0.50 7.09EU -0.02 0.00 0.20 3.90Japan 0.10 0.00 0.00 0.00PRC 2.85 0.00 0.00 8.00Hong Kong, China 0.06 0.00 -1.00 -16.00India 8.16 0.00 0.00 -36.00Korea, Rep. of 2.76 -1.00 -2.00 -60.00Malaysia 3.03 0.00 0.00 3.40Philippines 0.40 0.00 -21.13 -97.50Singapore 0.24 0.00 -1.00 -13.00Thailand 2.75 0.00 0.59 -37.61

basis point change fromLatest ClosingMarkets

0.50

0.20

0.00

0.00

-1.00

0.00

-2.00

0.00

-21.13

-1.00

0.59

PreviousDay*

PreviousWeek* 1-Jan-12*

US 1.62 3.58 0.59 -25.47EU 1.30 -0.10 -9.10 -53.40Japan 0.71 1.00 -1.10 -28.30PRC 3.56 1.00 2.00 12.00Hong Kong, China 0.56 -1.90 -0.40 -90.90India 8.17 0.10 -0.40 -39.50Indonesia 5.38 -0.20 -0.20 -65.20Korea, Rep. of 3.06 -1.00 3.00 -73.00Malaysia 3.52 2.60 2.50 -18.00Philippines 4.15 -4.68 -24.39 -93.39Singapore 1.30 -1.00 0.00 -33.00Thailand 3.52 1.80 -3.40 23.10Viet Nam 10.20 0.00 0.00 -230.00

basis point change fromLatest ClosingMarkets

0.59

-9.10

-1.10

2.00

-0.40

-0.40

-0.20

3.00

2.50

-24.39

0.00

-3.40

0.00

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

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

5

Tip: Zoom-in on the table using the Acrobat zoom tool Benchmark Yield Curves – LCY Government Bonds

Indonesia

EU = European Union, LCY = local currency US = United States. Source: Based on data from Bloomberg.

Viet NamThailandSingapore

PhilippinesMalaysiaKorea, Republic of

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

JapanEUUS

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0 4 8 12 16 20 24 28 32

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

-0.3

0.1

0.5

0.9

1.3

1.7

2.1

2.5

0 5 10 15 20 25 30

Yie

ld (%

)

Time to maturity (years)

07-Dec-12 30-Nov-12 23-Nov-12

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

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

2.50

2.75

3.00

3.25

3.50

3.75

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

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

0.0

0.5

1.0

0 2 4 6 8 10 12 14 16

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

4.3

4.8

5.3

5.8

6.3

6.8

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

Yie

ld (%

)Time to maturity (years)

07-Dec-12 30-Nov-12 23-Nov-12

2.7

2.8

2.9

3.0

3.1

3.2

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

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

2.8

3.0

3.2

3.4

3.6

3.8

4.0

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

Yie

ld (%

)

Time to maturity (years)

07-Dec-12 30-Nov-12 23-Nov-12

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0 3 6 9 12 15 18 21 24 27

Yie

ld (%

)

Time to maturity (years)

07-Dec-12 30-Nov-12 23-Nov-12

0.0

0.5

1.0

1.5

2.0

2.5

0 3 6 9 12 15 18 21

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

2.5

2.8

3.0

3.3

3.5

3.8

4.0

0 2 4 6 8 10 12 14 16

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

8.7

9.1

9.5

9.9

10.3

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

Yie

ld (%

)

Time to maturity (years)07-Dec-12 30-Nov-12 23-Nov-12

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

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

6

Tip: Zoom-in on the table using the Acrobat zoom tool 2- versus 10- Year Yield Spread Chart

EU = European Union, US = United States. Source: Based on data from Bloomberg LP.

0 50 100 150 200 250

US

EU

Japan

China, People's Rep. of

Hong Kong, China

Indonesia

Korea, Rep. of

Malaysia

Philippines

Singapore

Thailand

Viet Nam

basis points

7-Dec-12

30-Nov-12

23-Nov-12

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

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

7

Tip: Zoom-in on the table using the Acrobat zoom tool Policy Rate versus Inflation Rate

Philippines Thailand

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

The PRC uses the 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

1.70

1-year Lending Rate

6.00

-4

-2

0

2

4

6

8

10

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

Inflation Rate

3.80

HKMA Base Rate

0.50

-4

-2

0

2

4

6

8

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

Inflation Rate

7.45

Repurchase Cut-off Yield

8.00

-2

0

2

4

6

8

10

12

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

Inflation Rate4.32

5.75

0

2

4

6

8

10

12

14

16

18

20

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

BI Rate

Inflation Rate

1.60

7-Day Repo Rate

2.75

0

2

4

6

8

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

Inflation Rate

1.30

Overnight Policy Rate

3.00

-4

-2

0

2

4

6

8

10

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

Inflation Rate

2.80

Overnight Reverse

Repo Rate

3.50

0

2

4

6

8

10

12

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

Inflation Rate

2.74

1-Day Repo Rate

2.75

-6

-4

-2

0

2

4

6

8

10

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

Inflation Rate

7.08

Prime Lending Rate

9.00

0

3

6

9

12

15

18

21

24

27

30

Jan-07 Nov-07 Sep-08 Jul-09 May-10 Mar-11 Jan-12 Dec-12

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

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

8

Tip: Zoom-in on the table using the Acrobat zoom tool Credit Default Swap Spreads and Exchange Rate Indexes

Credit Default Swap Spreads — Senior 5-Year*

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

* In US$ and based on sovereign bonds Source: Thomson Reuters

Mid

spre

ad in

bas

is po

ints

Source: ADB-Office of Regional Economic Integration staff calculations based on Bloomberg data.

0

200

400

600

800

1,000

1,200

1,400

Jan-08 Aug-08 Mar-09 Nov-09 Jun-10 Jan-11 Sep-11 Apr-12 Dec-12

China, People's Rep. of

Hong Kong, China

Indonesia

Korea, Rep. of

Japan

Malaysia

Philippines

Thailand

50

60

70

80

90

100

110

120

130

50

60

70

80

90

100

110

120

130

Jan-07 Jul-07 Jan-08 Aug-08 Feb-09 Sep-09 Mar-10 Oct-10 Apr-11 Nov-11 May-12 Dec-12

China, People's Rep. of

Indonesia

Korea, Rep. of

Malaysia

Philippines

Thailand

Singapore

Viet Nam

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

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

9

Tip: Zoom-in on the table using the Acrobat zoom tool Selected Debt Security Issuances (3 – 7 December 2012)

PRC 5-Dec 3-year Treasury Bond 3.10 28.00 28.00HK 4-Dec 91-day Exchange Fund Bills 0.07 25.78 25.78

364-day Exchange Fund Bills 0.13 5.00 5.00ID 3-Dec 3-month Treasury Bills 1.95 1,000.00 700.00

1-year Treasury Bills 4.22 500.00JP 4-Dec 10-year Japan Government Bonds 0.73 2,300.00 2,299.15

5-Dec 6-month Treasury Discount Bills 0.09 3,500.00 3,319.906-Dec 3-month Treasury Discount Bills 0.10 5,700.00 5,739.92

30-year Japan Government Bonds 1.93 700.00 770.90KR 3-Dec 91-day Monetary Stabilization Bonds 2.79 1,200.00 1,200.00

3-year Treasury Bonds 2.85 2.75 1,700.00 1,700.0030-year Treasury Bonds 3.23 3.00 400.00 400.00

MY 3-Dec 91-day BNM Islamic Notes 3.05 1.50 1.50210-day BNM Notes 3.01 1.00 0.50

5-Dec 126-day BNM Islamic Notes 3.05 1.00 1.00182-day BNM Islamic Notes 3.05 1.00 1.00210-day BNM Notes 2.99 0.50 0.50

PH 4-Dec 10-year Treasury Bond 4.05 4.00 9.00 9.00SG 3-Dec 91-day Treasury Bills 0.13 2.00 2.00TH 3-Dec 28-day BOT Bills 2.73 20.00 16.93

91-day BOT Bills 2.74 25.00 25.00182-day BOT Bills 2.76 25.00 22.27364-day BOT Bills 2.77 40.00 40.00

6-Dec 14-day BOT Bills 2.73 40.00 34.29BNM = Bank Negara Malaysia, BOT = Bank of Thailand, LCY = local currency.Sources: Local market sources and Bloomberg, LP.

A m o u n t Is s u e d (L C Y billio n)M a r k e ts

A u c tio n D a te T y p e o f S e c u r ity

A v e r a g e Y ie ld (% )

C o u p o n (% )

A m o u n t O ffe r e d (L C Y billio n)

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

10

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

Tip: Zoom-in on the table using the Acrobat zoom tool Selected Asia Data Releases (11 – 17 December 2012)

Source: AsianBondsOnline , Bloomberg LP, and Reuters.

R e le a s e D a te R e c e n t T r e n d sE c o n o m y a n d V a r ia b le H is to r ic a l D a ta

Malaysia’s industrial production rose 4.9% year-on-year (y-o-y) in September, after posting a revised 0.2% decline in August.

MalaysiaIndustrial Productiony-o-y, %OCT

12/11 09/11: 2.8%10/11: 2.8%08/12: −0.2%09/12: 4.9%

Bank Indonesia’s (BI) Board of Governors decided to keep the benchmark interest rate steady at 5.75% in its meeting on 8 November.

The Republic of Korea’s unemployment rate hovered at 3.0% in October.

IndonesiaBI Rate%11 DEC

12/11 11/11: 6.00%12/11: 6.00%10/12: 5.75%11/12: 5.75%10/11: 3.1%1111: 3.1%09/12: 3.1%10/12: 3.0%

12/11Republic of KoreaUnemployment Rate%NOV

Machine orders in Japan continued to decline 7.8% y-o-y in September. Follow ing a 6.1% decline in August.

Manufacturing sales in Malaysia climbed 3.3% y-o-y in September from a revised 1.0% grow th in August.

MalaysiaManufacturing Sales Valuey-o-y, %OCT

12/11 09/11: –27.0%10/11: –13.2%08/12: −9.0%09/12: 22.8%

PhilippinesExportsy-o-y, %OCT

Philippine exports rebounded in September, grow ing 22.8% y-o-y in September, reversing a 9.0% decline in August.

12/11 09/11: 16.7%10/11: 12.1%08/12: 1.0%09/12: 3.3%

JapanMachine Ordersy-o-y, %OCT

12/12 09/11: 9.8%10/11: 1.5%08/12: −6.1%09/12: −7.8%

Hong Kong, ChinaIndustrial Productiony-o-y, %3Q12

12/13 2Q11: 2.0%3Q11: 0.2%1Q12: −1.6% 2Q12: −2.9%

Industrial production in Hong Kong, China fell 2.9% in 2Q12 after declining 1.6% in 1Q12.

Republic of Korea7-Day Repo Rate%13 DEC

12/13 11/11: 3.25%12/11: 3.25%10/12: 2.75%11/12: 2.75%

The Bank of Korea’s Monetary Policy Committee decided at its 9 November meeting to keep the 7-day repurchase rate steady at 2.75%.

PhilippinesOverseas Remittancesy-o-y, %OCT

12/13 09/11: 8.4%10/11: 6.2%08/12: 7.6%09/12: 5.9%

Overseas remittances to the Philippines grew 5.8% y-o-y in September follow ing 7.6% grow th in August.

PhilippinesOvernight Borrowing Rate%13 DEC

12/13 11/11: 4.50%12/11: 4.50%10/12: 3.50%11/12: 3.50%

The Philippines kept the overnight borrow ing rate at 3.50% during its last Monetary Board meeting on 25 October.

SingaporeNon-Oil Domestic Exportsy-o-y, %NOV

12/17 10/11: −16.3%11/11: 1.4%09/12: −3.6%10/12: 7.9%

Non-oil domestic exports grew 7.9% y-o-y in October after declining 3.6% in September.

PRCFDIy-o-y, %NOV

12/14 to 12/18 10/11: 8.8%11/11: –9.8%09/12: −6.8%10/12: −0.24%

The People’s Republic of China’s (PRC) foreign direct investment fell 0.24% in October, w hich w as less than September’s 6.8% decline.

SingaporeRetail Salesy-o-y, %OCT

12/14 09/11: −0.2%10/11: 8.5%08/12: 3.3%09/12: 2.5%

Retail sales grow th in Singapore slow ed to 2.5% in September from 3.3% in August.

…………………………………………………………………………………………………………………………….......asianbondsonline.adb.org

DEBT HIGHLIGHTSASIANBONDSONLINE

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

News Articles: Sources for Further Reading

BOJ and RBI Sign Currency Swap Agreement

• Japan, India strike currency swap agreement Japan Today (05 December 2012)

• Reserve Bank of India (RBI) signed Currency Swap Agreement with Bank of Japan

Jagran Josh (05 December 2012)

Currency-Swap-Financed Trade Settlement Facility between the PRC and Republic of Korea Introduced

• Introduction of Korea-China Currency Swap-Financed Trade Settlement Facility

The Bank of Korea (04 December 2012)

The PRC to Implement Pilot System for Monitoring Capital Flows

• Pilot system will monitor capital flow China Daily (05 December 2012)

CBRC Increases Capital Requirements of Banks

• China raises requirements to control bank risks China Daily (08 December 2012)

BI Announces New Capital Adequacy Ratios for Banks

• Bank Indonesia Sets New Rule to Strengthen System Jakarta Globe (05 December 2012)

The Republic of Korea’s GDP Growth Rate for 3Q12 Revised Downward; PRC’s Non-Manufacturing PMI Rises to 55.6 in November; Hong Kong, China’s PMI Rises to 52.2 in November

• Gross National Income: 3rd Quarter of 2012 The Bank of Korea (06 December 2012)

• Non-manufacturing PMI hits 3-month high China Daily (04 December 2012)

• HSBC Hong Kong November PMI 52.2 Vs 50.5 in October EuroInvestor.com (05 November 2012)

Consumer Price Inflation Eases in Indonesia, the Philippines, and Thailand. Accelerates in the PRC

• Inflation slows on lower raw food, clothing prices The Jakarta Post (04 December 2012)

• Summary Inflation Report Consumer Price Index (2006=100) : November 2012

National Statistics Office (05 December 2012)

• Consumer Price Index and Core Consumer Price Index: November 2012

Ministry of Commerce (03 December 2012)

• Consumer Price Index and Core Consumer Price Index: October 2012

Ministry of Commerce (02 November 2012)

• China's November inflation rises to 2% China Daily (10 December 2012)

Net Foreign Investment in the Republic of Korea’s LCY Bonds Totals KRW267 Billion in November

• Foreign Investments in Domestic Securities in November 2012 Financial Supervisory Service (05 December 2012)

China Longyuan Power and Shui On Land Issue US$ Perpetual Bonds; China Cinda Asset Management and C Corporacion Andina de Fomento Issue CNH Bonds

• BONDS: Longyuan debut perp points to capital quick-fix IFRAsia (03 December 2012)

• BONDS: Shui On deal proves risk still on IFRAsia (04 December 2012)

• China Cinda prices first PRC asset management dim sum FinanceAsia (07 December 2012)

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

Disclaimer: AsianBondsOnline Newsletter is available to users free of charge. ADB provides no warranty or undertaking of any kind with respect to the information and materials found on, or linked to, the AsianBondsOnline Newsletter. ADB accepts no responsibility for the accuracy of the material posted or linked to in the publication, or the information contained therein, or for any consequences arising from its use, and does not invite or accept reliance being placed on any material or information so provided. Views expressed in articles marked with AsianBondsOnline are those of the authors and not ADB. This disclaimer does not derogate from, and is in addition to, the general terms and conditions regarding the use of the AsianBondsOnline website, which also apply.

11