23 January 2012

Bangko Sentral ng Pilipinas (BSP) slashed its policy rates by 25 basis points (bps) in its monetary policy meeting last week. The overnight borrowing rate is now at 4.25%, while the overnight lending rate is at 6.25%. On 18 January, Bank Indonesia decided to widen the lower range of its interbank lending rate to ensure liquidity in the banking system. In Malaysia, consumer price inflation slightly eased to 3.0% year-on-year (y-o-y) in December from 3.2% in November. In Viet Nam, consumer price inflation eased to 17.3% y-o-y in January from 18.1% in December. The growth rate of the People's Republic of China's (PRC) gross domestic product (GDP) slowed to 8.9% y-o-y in 4Q11 from 9.1% in 3Q11. For the full-year 2011, the PRC's GDP grew 9.2%. Retail sales growth in the Republic of Korea improved in December. Department store sales surged 11.0% y-o-y in December after a 0.5% fall in November. Singapore's non-oil domestic export growth accelerated to 9.0% y-o-y in December from 1.4% in November. Last week, the Hong Kong Monetary Authority issued new regulations that made investments in CNH bonds issued by the PRC eligible for financial instiutions' 25% deposit requirement. The Philippine government announced that it intends to be prudent and maintain a 2012 deficit target of 2% of GDP due to uncertainties in the global economy. Revenues are targeted at 14.5% of GDP while expenditures are to be capped at 16.5% of GDP. Also, overseas remittances to the Philippines rose by 10.6% yo-y to reach a monthly record of US$1.8 billion in November. In Hong Kong, China last week, the government issued HKD1.5 billion worth of government bonds under the Institutional Bond Issuance Programme; Nang Fung issued US$350 million of 5-year Reg S bonds; and Lifetime International, priced US$350 million of

Key Developments in Asian Local Currency Markets

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oody's raised Indonesia's FCY and LCY bond ratings to Baa3 from Ba1, with a stable outlook for both. The ratings upgrade shows that the Indonesian economy is performing well amid uncertainties in the global economy. Moody's also raised its FCY deposit ratings for nine Indonesian banks to Baa3/Prime-3 with a stable outlook. In December, Fitch upgraded Indonesia's FCY and LCY sovereign ratings to BBB-.

Asia Bond Monitor November 2011

10-Year Selected LCY Government Security Yields
Markets
Close of 20 January 2012

basis point change from Latest Closing Previous Day* Previous Week* 1-Jan-12*
2.02 1.93 0.99 3.40 1.39 8.16 5.60 3.58 3.82 5.17 1.63 3.19 12.41 4.76 6.90 1.40 0.00 1.20 -2.10 -4.90 0.20 3.00 0.92 2.00 0.50 0.00 16.10 16.10 16.40 16.40 4.00 4.00 -2.00 -9.50 -5.70 -57.30 -1.10 3.00 3.00 2.41 2.41 3.00 3.00 -2.10 0.10 0.10 14.84 10.00 -0.10 -4.00 -7.50 -41.20 -43.20 -11.50 3.00 8.70 0.00 -10.10 -8.60

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

-2.00 -9.50 -5.70 -57.30 -1.10

-2.10

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

5-year bonds. In the Republic of Korea, Shinhan Bank priced US$700 million worth of 5.5-year bonds, while KT Corporation, issued US$350 million worth of 5-year bonds. Additionally, Korea Eximbank issued MYR500 million worth of 5-year bonds last week. Malaysia's Sarawak Energy raised a total of MYR2.5 billion from the sale of Islamic medium-term notes. In the Philippines, Rizal Commercial Banking Corp. sold US$200 million of 5-year notes. In Singapore, Oversea-Chinese Banking Corporation issued HKD1.0 billion worth of 5-year notes and property company Overseas Union Enterprise sold SGD300 million worth of 5-year bonds. Government bond yields fell last week for all tenors in Indonesia, after Moody's upgraded the country's sovereign ratings. Yields also fell for most tenors in Malaysia, Philippines, Thailand, Viet Nam and Hong Kong, China, following a lower CPI in Malaysia and Viet Nam, and a lowered Philippine policy rate. Yields rose for most tenors in the PRC and Japan and rose for all tenors in the Republic of Korea and Singapore. Yield spreads between 2- and 10-year tenors widened in the Republic of Korea; Philippines; Singapore; Thailand and Viet Nam, and narrowed in other emerging East Asian markets.

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Summary Text of News Articles Moody's Raises Indonesia's Ratings to Investment Grade, Raises Ratings for Nine Indonesian Banks; Affirms Malaysia's Rating

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Indonesia received its second ratings upgrade in a month as Moody's restored the country's investment grade credit rating. Moody's raised Indonesia's foreign currency (FCY) and local currency (LCY) ratings to Baa3 from Ba1, with a stable outlook for both. According to Moody's, the key factors for the upgrade were (i) Moody's anticipation that the government's financial metrics would remain in line with Baa3 peers, (ii) the demonstrated resilience of Indonesia's economic growth in the face of large external shocks, (iii) the presence of policy buffers and tools that address financial vulnerabilities, and (iv) a healthier banking system capable of withstanding stress. Bank Indonesia Governor Darmin Nasution said the ratings upgrade acknowledges Indonesia's strong economic performance amid uncertainties in the global economy. Moody's also raised its FCY deposit ratings for nine Indonesian banks to Baa3/Prime-3 with a stable outlook. The nine banks were Bank Central Asia, Bank CIMB Niaga, Bank Danamon Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan Negara, and Pan Indonesia Bank. Also, Moody's affirmed Malaysia's A3 long term local and foreign currency rating with a stable outlook. According to Moody's, Malaysia's A3 sovereign rating has based on its economic resiliency, backed by a highly open, medium-sized economy, as well as a well-diversified external sector. While Malaysia's credit metrics have weakened due to the global financial crisis, the stable outlook reflects prospects for gradual reforms to help cushion the impact of external shocks and countercyclical fiscal policy.

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BSP Cuts Policy Rates by 25 bps; BI Reduces FASBI Rate by 200 bps; Malaysia's CPI Falls to 3.0%

In the Philippines, Bangko Sentral ng Pilipinas (BSP) slashed its policy rates by 25 basis points (bps) in its monetary policy meeting last week. The move was anticipated by market participants as the country's growth rate weakens and inflation remains benign. The overnight borrowing rate (reverse repurchase) is now at 4.25%, while the overnight lending rate (repurchase) is at 6.25%. On 18 January, Bank Indonesia (BI) decided to widen the lower range of its interbank lending rate to ensure liquidity in the banking system. The central bank widened the floor of its Fasilitas Bank Indonesia (FASBI) rate to 200 bps below the 6.0% benchmark rate, bringing the FASBI deposit rate to 4.0%. The lowering of the overnight deposit rate should discourage banks from parking their excess funds with the central bank. In addition, the lower FASBI rate offers more incentive for new loans and transactions between banks. Malaysia's consumer price inflation eased slightly to 3.0% year-on-year (y-o-y) in December from 3.2% in November. The index for food and non-alcoholic beverages was up 5.1% y-o-y in December, the same rate as in the previous month. Meanwhile the index for non-food items rose 2.1% y-o-y in December, lower than the 2.5% increase posted in November. On a month-on-month (m-o-m) basis, consumer prices increased 0.1% in December. For the full-year 2011, Malaysia posted an average consumer price inflation rate of 3.2%. For policy rate trends in the Philippines, refer to this link: http://asianbondsonline.adb.org/philippines/data/marketwatch.php?code=policy_rate_and_inflation_trends For inflation trends in Malaysia, refer to this link: http://asianbondsonline.adb.org/malaysia/data/marketwatch.php?code=policy_rate_and_inflation_trends

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The PRC's 4Q11 GDP Growth and 2011 Industrial Production Growth Slow; Japan Industrial Production Falls

The growth rate of the People's Republic of China's (PRC) gross domestic product (GDP) slowed to 8.9% y-o-y in 4Q11 from 9.1% in 3Q11. For the whole of 2011, the PRC's GDP grew 9.2%. The primary sector, which is involved in the production and refinement of natural resources, grew 4.5% y-o-y; the secondary sector, which is involved in the production of processed goods, grew 10.6%; and the tertiary sector, which encompasses services, grew 8.9%. The PRC's growth rate of value-added industrial output increased slightly to 12.8% y-o-y in December from 12.4% in November. However, for the whole of 2011, value-added industrial output growth fell to 13.9% y-o-y from 15.7% in 2010. Heavy industry's output was up 14.3% y-o-y, while light industry's output was up 13.0%.

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Summary Text of News Articles

In Japan, the revised report of the Ministry of Economy, Trade and Industry (METI) showed industrial production falling 4.2% y-o-y in November compared with a previous report showing a decrease of only 4.0%. November's figure was a reversal from October's slight increase of 0.1% y-o-y, resulting from the appreciation of yen, the global slowdown, and flooding in Thailand. For statistics on GDP growth in the People's Republic of China, refer to this link: http://asianbondsonline.adb.org/china/data/macroeconomic_credit.php

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Retail Sales Growth Improves in the Republic of Korea in December; Philippines BOP Surplus Falls in 2011; Singapore's NODX Growth Accelerates in December

Retail sales growth in the Republic of Korea improved in December. Department store sales surged 11.0% y-o-y in December after a 0.5% fall in November. Also, discount store sales increased 3.7% y-o-y for the month. In the Philippines, the balance of payments (BOP) deficit reached US$114 million in December compared with a surplus of US$1.2 billion in December 2010. For the whole of 2011, the BOP surplus fell 28.8% y-o-y to US$10.2 billion due to foreign outflows amid the European debt crisis and global economic slowdown. Singapore's non-oil domestic export (NODX) growth accelerated to 9.0% y-o-y in December from 1.4% growth posted in November. Non-electronic shipments increased 17.0% y-o-y, led by ships and boats, pharmaceuticals, and printed materials. On the other hand, exports of electronic products dropped 4.6% y-o-y in December due to slower exports of personal computer parts, diodes and transistors, and disk drives. On a m-o-m and seasonally adjusted basis, NODX rose 16.0% in November after the previous month's 5.8% increase.

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Hong Kong, China Eases CNH Risk Limits

Last week, the Hong Kong Monetary Authority issued new regulations making it easier for financial institutions to hold CNH. Currently, financial institutions are required to keep 25% of their CNH deposit amounts in cash with the Clearing Bank and must also maintain a net open position-the amount by which assets are not matched by corresponding liabilities-of 20%. Under the new rules, CNH bonds issued by the PRC were made eligible to count as investments to meet the 25% deposit requirement and the net open position limit was reduced to 10%.

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Remittances to Philippines Rise in November; BSP Eases Regulations on Dollar Outflows

Overseas remittances to the Philippines rose by 10.6% y-o-y to reach a monthly record of US$1.8 billion in November. The surge in remittances was attributed to additional funds sent by overseas Filipinos to their families for holiday spending. Remittances from sea-based and land-based workers grew 15.8% and 9.3% y-o-y, respectively, to stand at US$377.7 million and US$1.4 billion. Total remittances for January-November amounted to US$18.3 billion, an increase of 7.3% y-o-y. BSP issued Circular 742 to ease regulations affecting seven major types of US dollar transactions, including (i) nontrade current account transactions such as leasing foreign owned equipment; (ii) foreign grant and loan refunds, as well as US dollar commissions on stock market deals and settlement of foreign currency deposit unit (FCDU) deposits of closed banks; (iii) authorized agent banks selling dollars as advanced payment of imports, regardless of amount and without the need for BSP prior approval; (iv) lifting of the mandatory inward remittance of US dollar earnings of Filipinos; (v) exemption of public-private partnership projects from securing prior BSP approval to apply for foreign loans; (vi) lifting of the 3-day rule to remit US dollar obligations for inward shipments of importers; and (vii) extension of the validity of letters of credit for exporters beyond 1 year. The circular became effective prior to the end of 2011. The announcement came after BSP reported a record-high level of reserves of US$75 billion. The new foreign exchange policy is meant to encourage PHP-US$ transactions in the formal market, improve data capture of these deals, and facilitate foreign exchange deals in the banking system.

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Summary Text of News Articles Hong, Kong, China Issues HKSAR Bonds; Nang Fung, Lifestyle International, Shinhan Bank, KT Corporation, and RCBC Issue US$ Bonds; Sarawak Energy Sells MYR2.5 Billion Sukuk; OCBC Issues HKD1.0 Billion 5-Year Notes; OUE Raises SGD300 Million from Bond Sale

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In Hong Kong, China last week, the government issued HKD1.5 billion worth of government bonds under the Institutional Bond Issuance Programme. A total of HKD3.7 billion was tendered and the average price of the bonds was 104.79, equivalent to a yield of 1.918%. Nang Fung, a Hong Kong, China luxury property developer, issued US$350 million of 5-year Reg S bonds. The bonds carry a coupon of 5.25%; were priced to yield 5.394%; and were rated Baa3 by Moody's, BBB- by S&P, and BBB by Fitch. Lifetime International, a department store operator, priced 5-year 5.25% bonds to yield 5.401%. The bonds were issued at a size of US$350 million and rated BBB- by Fitch and Baa3 by Moody's. Two entities in the Republic of Korea sold US$-denominated bonds last week. Shinhan Bank priced US$700 million worth of 5.5-year bonds at a coupon rate of 4.375% last week. Meanwhile, KT Corporation-a telecom company-issued US$350 million worth of 5-year bonds at a coupon rate of 3.875%. Asian investors were allocated 76% of the bonds, while the remainder went to European investors. Malaysia's Sarawak Energy raised a total of MYR2.5 billion from the sale of Islamic medium-term notes, or sukuk, an upsize from the planned MYR1.5 billion issuance. The issuance comprised MYR1.2 billion of 10-year notes with a 4.5% annual return and MYR1.3 billion of 15-year notes with a 4.85% annual return. The sukuk, rated AA1 by RAM Ratings, are part of Sarawak Energy's MYR15 billion Sukuk Musyarakah Programme. Proceeds from the issuance will be used to finance power plants and transmission system projects. In the Philippines, Rizal Commercial Banking Corp. (RCBC) sold US$200 million of 5-year notes. The US$denominated, senior, unsecured fixed-rate notes mature on 31 January 2017 and were priced at par with a coupon and yield of 5.25%. The bonds were bought by Asian (92%) and European (8%) investors. Standard Chartered Bank was the lead manager for the issue and the bonds will be listed on the Singapore Stock Exchange. RCBC disclosed that the proceeds will be used for general banking operations and lending activities. In Singapore, Oversea-Chinese Banking Corporation issued HKD1.0 billion worth of 5-year notes last week. The notes carry a coupon of 2.2% per year. Proceeds will be used for general corporate purposes. Also, property company Overseas Union Enterprise sold SGD300 million worth of 5-year bonds priced at 4.95%.

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Selected Government Security Yields

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3-Month Selected LCY Government Security Yields

Latest Closing 0.04 0.14 0.10 2.88 0.24 8.59 2.99 3.35 1.45 0.34 3.08 basis point change from Previous Previous 1-Jan-12* Day* Week* 2.04 0.00 2.04 3.05 -3.10 -0.60 -3.10 19.70 0.00 0.00 0.00 0.00 0.00 11.00 11.00 11.00 0.00 1.00 0.00 2.00 -2.00 7.00 7.00 7.00 0.20 0.00 0.20 -0.50 1.00 0.00 1.00 -1.00 -5.50 -0.50 -5.50 7.00 0.00 0.00 0.00 -3.00 -0.28 0.00 -0.28 -4.43

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

Close of 20 January 2012

10-Year Selected LCY Government Bond Yields

Latest Closing 2.02 1.93 0.99 3.40 1.39 8.16 5.60 3.58 3.82 5.17 1.63 3.19 12.41 basis point change from Previous Previous 1-Jan-12* Day* Week* 4.76 16.10 16.10 14.84 6.90 16.40 16.40 10.00 1.40 4.00 4.00 -0.10 -2.00 0.00 -2.00 -4.00 -9.50 1.20 -9.50 -7.50 -5.70 -2.10 -5.70 -41.20 -4.90 -57.30 -57.30 -43.20 -1.10 0.20 -1.10 -11.50 3.00 3.00 3.00 3.00 0.92 2.41 2.41 8.70 2.00 3.00 3.00 0.00 -2.10 0.50 -2.10 -10.10 0.00 0.10 0.10 -8.60

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

Close of 20 January 2012

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

3.65 3.40 3.15 2.90 2.65 2.40 0 1 2 3 4 5 6 7 8 9 10 11
Yield (%)

Hong Kong, China

2.0 8.0 7.5 1.5
Yield (%)

7.0 6.5 6.0 5.5 5.0 4.5

Yield (%)

1.0

0.5

0.0 0 2 4 6 8 10 12 14 16

4.0 0 3 6 9 12 15 18 21 24 27 30 33

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

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)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

Singapore
2.5 2.0 1.5 1.0 0.5 0.0 0 3 6 9 12 15 18 21
3.8

Thailand
13.0

Viet Nam

3.6
Yield (%) Yield (%)

12.8

Yield (%)

3.3

12.5

3.1

12.3

2.8 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

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

US
3.5 3.0 2.5
Yield (%)
3.5 3.0 2.5

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

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)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

Time to maturity (years)

20-Jan-12 13-Jan-12 06-Jan-12

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

20-Jan-12

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

13-Jan-12 6-Jan-12

300

350

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 0 0 Inflation Rate -2 -4 Jan-06 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 6 7 8 9 0 -2 -4 Jan-06 Oct-0 6 1-year Lending Rate 6 6.56 4 4.10 2 HKMA Base Rate 8

Hong Kong, China

12 10 5.70 Inflation Rate 8 6 4 0.50 2 0 Inflation Rate Repurchase Cut-off Yield

8.50 9.11

Apr-1 Jan-12 1

Jul-0 7

Apr-0 Jan-09 Oct-0 8 9

Jul-1 0

Apr-1 Jan-12 1

-2 Jan-06 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 Apr-1 Jan-12 6 7 8 9 0 1

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 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 Apr-1 Jan-12 6 7 8 9 0 1 Inflation Rate 6.00 2 3.79 4 BI Rate 6 7-Day Repo Rate 8

Korea, Republic of
10
c

Malaysia

8 6 4 2 0

Overnight Policy Rate

4.20 3.25

3.00 3.00

Inflation Rate 0 Jan-06 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 Apr-1 Jan-12 6 7 8 9 0 1

-2

Inflation Rate

-4 Jan-06 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 Apr-1 Jan-12 6 7 8 9 0 1

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 4.25 4 2 0 Jan-06 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 Apr-1 Jan-12 6 7 8 9 0 1 4.20 -2 Overnight Reverse Repo Rate 10 8 Inflation Rate 6

Thailand
30 Inflation Rate 27 24 21 4 2 0 1-Day Repo Rate 3.53 3.25 18 15 12 9 6 -4 -6 Jan-06 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 Apr-1 Jan-12 6 7 8 9 0 1 3 Prime Lending Rate

Viet Nam

Inflation Rate

18.13

9.00

0 Jan-06 Oct-0 Jul-0 Apr-0 Jan-09 Oct-0 Jul-1 Apr-1 Jan-12 6 7 8 9 0 1

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 R e p. of

Hong K ong, China

1,200
Indone s ia

Kore a , Re p. of

1,000

Mid spread in basis points

J a pa n

Ma 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-0 8

M ay-09

O ct-09

M ar-10

S ep -10

F eb -11

Ju l-11

Jan -12

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

130 130
C hina , P e ople 's R e p. of

Indone s ia

120

120
M a la ys ia

P hilippine s

110

110
Tha ila nd

100

100

S inga pore

K ore a , R e 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

Sep -07

Ju n - 08

F eb - 09

N o v- 09

Ju l- 10

A p r-11

50 Jan -12

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Selected Debt Security Issuances (16 - 20 January 2012)

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Mark ets
HK JP

A u c tio n D ate
17-Jan 17-Jan 18-Jan 19-Jan

T y p e o f S ec u rity
91-day Exchange Fund Bills 182-day Exchange Fund Bills 1-year Treasury Discount Bills 30-year Japan Government Bonds 3-month Treasury Discount Bills 5-year Japan Government Bonds 91-day Monetary Stabilization Bonds 182-day Monetary Stabilization Bonds 10-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

0.26 0.28 0.10 1.92 0.10 0.33 3.44 3.43 3.78 2.95 2.98 2.92 2.98 2.96 2.88 5.17 0.23 3.08 3.03 3.09 3.10 3.25 5.75 4.25 0.30 2.00 25.25 9.00 2,500.00 700.00 6,000.00 2,500.00 1,200.00 500.00 1,600.00 1.50 1.50 2.00 1.50 1.50 2.00 9.00 4.00 20.00 20.00 20.00 16.00 25.25 9.00 2,499.91 699.10 6,029.83 2,499.40 1,210.00 540.00 1,683.00 1.50 1.50 2.00 1.50 1.50 2.00 9.00 4.00 20.00 20.00 20.00 16.00

KR

16-Jan

MY

16-Jan

91-day BNM Notes 154-day BNM Islamic Notes 210-day BNM Notes

18-Jan

91-day BNM Islamic Notes 364-day BNM Notes 364-day BNM Notes

PH SG TH

17-Jan 16-Jan 17-Jan

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

18-Jan

5-year Government Bond

Sources:LocalmarketsourcesandBloomberg,LP.

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Selected Asia Data Releases (24 - 30 January 2012)

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C o u n tr y / a r ia b le V
Japan BOJ Target Rate % 24 JAN Japan Merchandise Trade Exports y-o-y, % DEC Philippines Trade Balance US$ million NOV Singapore CPI y-o-y, % DEC Thailand 1-Day Re purchase Rate % 25 JAN Hong Kong, China Exports y-o-y, % DEC Republic of Korea Real GDP y-o-y, % 4Q11 Singapore Indus trial Production y-o-y, % DEC Japan CPI y-o-y, % DEC Japan Retail Trade y-o-y, % DEC Republic of Korea Current Account US$ million DEC Malaysia M3 Money Supply y-o-y, % DEC Thailand Manufacturing Production Index y-o-y, % DEC Philippines GDP y-o-y, % 4Q11 Vie t Nam Exports YTD y-o-y, % JAN Vie t Nam Retail Sales YTD y-o-y, % JAN Vie t Nam Indus trial Production Index y-o-y, % JAN

R e le a s e D a te
01/24

H is to r ic a l D a ta
12/10: 0.10% 01/11: 0.10% 11/11: 0.10% 12/11: 0.10% 11/10: 9.1% 12/10: 12.9% 10/11: -3.8% 11/11: -4.5% 10/10: -116 11/10: -810 09/11: -1,179 10/11: -932 11/10: 3.8% 12/10: 4.6% 10/11: 5.4% 11/11: 5.7% 12/10: 2.00% 01/11: 2.25% 11/11: 3.25% 12/11: 3.25% 11/10: 16.6% 12/10: 12.5% 10/11: 11.5% 11/11: 2.0% 3Q10: 4.4% 4Q10: 4.7% 2Q11: 3.4% 3Q11: 3.5% 11/10: 41.2% 12/10: 8.8% 10/11: 22.2% 11/11:-9.6% 11/10: 0.1% 12/10: 0.0% 10/11: -0.2% 11/11: -0.5% 11/10: 1.5% 12/10: -2.1% 10/11: 1.9% 11/11: -2.2% 11/10: 1,934.4 12/10: 2,114.4 10/11: 4,132.9 11/11: 5,045.9 11/10: 7.9% 12/10: 6.8% 10/11: 11.5% 11/11: 12.4% 11/10: 5.7% 12/10: -3.4% 10/11: -30.1% 11/11: -48.6% 3Q10: 7.3% 4Q10: 6.1% 2Q11: 3.1% 3Q11: 3.2% 12/10: 26.6% 01/11: 18.1% 11/11: 34.7% 12/11: 33.3% 12/10: 24.5% 01/11: 22.1% 11/11: 23.5% 12/11: 24.2% 12/10: 16.2% 01/11: 16.1% 11/11: 8.1% 12/11: 7.5%

R ec en t T ren d s
The Bank of Japan has kept its policy rate unchanged at 0.10% since December 2008 to support the economy.

01/25

Japans merchandise trade export grow th f urther w eakened in November to 4.5% year-on-year (y-o-y) f rom 3.8% in October due to the impact of the global economic slow dow n. The Philippines trade deficit improved slightly to US$932 million in October f rom a def icit of US$1.2 billion in September as imports slow ed.

01/25

01/25

Consumer price inf lation in Singapore accelerated to 5.7% y-o-y in November from 5.4% in October.

01/25

Thailands 1-day repurchase rate remained unchanged f or the second consecutive month in December at 3.25%.

01/26

Hong Kong, Chinas exports f ell to 2.0% y-o-y in November f rom 11.5% in October due to w eakness in global markets, particularly in the United States and Europe.

01/26

The real GDP grow th rate of the Republic of Korea leveled of f at 3.5% y-o-y in 3Q11, a marginal increase from the previous quarters grow th rate of 3.4%.

01/26

Singapores industrial production f ell 9.6% y-o-y in November af ter registering 22.2% grow th in October.

01/27

Consumer prices in Japan f ell 0.5% y-o-y in November af ter f alling 0.2% in October.

01/27

Retail trade sales in Japan fell 2.2% y-o-y in November f ollow ing1.9% grow th in October.

01/27

The Republic of Koreas current account surplus rose to US$5.0 billion in November f rom US$4.1 billion in October.

01/27

Malaysias M3 money supply expanded at 12.4% y-o-y in November, an increase f rom 11.4% grow th in October.

01/27

The manuf acturing production index of Thailand plunged 48.6% y-o-y in November f ollow ing a 30.1% decline in October.

01/30

The grow th of the Philippine economy w as tepid in both 2Q11 and 3Q11 at 3.1% and 3.2% y-o-y, respectively.

01/30-01/31

Amid uncertainties in the global economy, Viet Nams export grow th f or the w hole of 2011 eased to 33.3% y-o-y f rom the 34.7% grow th registered during the f irst 11 months of the year. Accumulated retail sales grow th in Viet Nam f or the w hole of 2011 rose to 24.2% y-o-y from 23.5% grow th during the f irst 11 months of 2011 on the back of strong domestic demand. Grow th in Viet Nams industrial production index eased to 7.5% y-o-y in December f rom 8.1% in November.

01/30-01/31

01/30-01/31

Source: AsianBondsOnline , Bloomberg LP, and Reuters.

11

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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) Moody's Raises Indonesia's Ratings to Investment Grade, Raises Ratings for 9 Indonesian Banks; Affirms Malaysias Rating Moodys Upgrades Indonesia Sovereign Rating Bank Indonesia (18 January 2012) Nine Indonesian banks have ratings upgraded by Moody's Bisnis Indonesia (18 January 2012) Moody's Disclosures on Credit Ratings of Malaysia, Government of Moody's (19 January 2012) Remittances to Philippines Rises; BSP Eases Regulations on Dollar Outflows January-November OF Remittances Reach US$18.3 Billion Bangko Sentral ng Pilipinas (16 January 2012) BSP eases rule on dollar outflows Philippine Star (16 January 2012)

BSP Cuts Policy Rates by 25 bps; BI Reduces FASBI Rate by 200 bps; Malaysias CPI Falls to 3.0% Monetary Board Cuts Policy Rates Bangko Sentral ng Pilipinas (19 January 2012) BI cuts interbank rate to improve liquidity The Jakarta Post (18 January 2012) Consumer Price Index Malaysia December 2011 Department of Statistics Malaysia (18 January 2012)

Hong, Kong, China Issues HKSAR bonds; Nang Fung, Lifestyle International, Shinhan Bank, KT Corporation, RCBC Issue US$ Bonds; Sarawak Energy Sells MYR2.5 Billion sukuk; OCBC Issues HKD1 Billion 5-year Notes; OUE Raises SGD300 Million from Bond Sale Tender results of the re-opening of 10-year Government Bonds under the Institutional Bond Issuance Hong Kong Monetary Authority (16 January 2011) Nan Fung gets debut bond away before European downgrades FinanceAsia (17 January 2012) KT Corp and Lifestyle raise $700 million driven by Asian demand FinanceAsia (17 January 2012) UPDATE: Lifestyle International Sells US$350 Million Bond To Yield 5.401% Capital.gr (18 January 2012) Nan Fung launches maiden bond offering of USD350 million The Asset (16 January 2012) Shinhan Bank Issues $700 Mln in Bonds YONHAP News (19 January 2011) SEB increases sukuk issuance due to good response The Star (18 January 2012) OUE raises S$300m via 5 yr bonds at 4.95% IFR Asia (18 January 2012) RCBC raises $200 million from 5-year senior debt sale Business World (20 January 2012)

PRC 4Q11 GDP Growth and 2011 Industrial Production Slows; Japan Industrial Production Falls National Economy Maintained Steady and Fast Development in the Year of 2011 National Bureau of Statistics (17 January 2012) Industrial Production Operation in December 2011 National Bureau of Statistics (17 January 2012) Indices of Industrial Production - Revised Report for November, 2011 Ministry of Economy, Trade and Industry (Japan) (18 January 2012)

Retail Sales Growth Improves in Republic of Korea in December; Philippines BOP surplus fell in 2011; Singapores NODX Growth Accelerates in December South Korean Department Store Sales Gain Most in 8 Months Bloomberg/Businessweek (18 January 2012) BOP surplus down 29% to $10.18 B Philippine Star (20 January 2012) Singapore's External Trade December 2011 International Enterprise Singapore (17 January 2012)

Hong Kong, China Eases CNH Risk Limits Adjustments to Renminbi (RMB) Risk Management Limit and Net Open Position Hong Kong Monetary Authority (17 January 2012)

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