7 November 2011 asianbondsonline.adb.org

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Key Developments in Asian Local Currency Markets

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onsumer price inflation in Indonesia slowed to 4.4% year-on-year (y-o-y) in October from 4.6% in September on account of lower prices for most food items. Consumer price inflation in the Republic of Korea eased to 3.9% y-o-y in October from 4.3% in September. In the Philippines, consumer price inflation quickened to 5.2% y-o-y in October from 4.8% in September. In Thailand, consumer price inflation rose to 4.2% y-o-y in October from 4.0% in September.

The People's Republic of China's (PRC) manufacturing purchasing managers' index (PMI) fell to 50.4 in October from 51.2 in August, while the non-manufacturing PMI fell to 57.7 from 59.3 over the same period. Singapore's PMI was at 49.5 in October, slightly higher than the 49.4 registered in September but still below a reading of 50 which signals an increase in output. Viet Nam's index of industrial production rose 5.3% y-o-y in October, down from a 12.0% increase in September.

Hong Kong, China's retail sales grew 24.1% y-o-y in September, following 29.0% growth in August. Viet Nam's total retail sales of consumer goods and services for the first 10 months rose by 23.1% y-o-y. In Japan, domestic vehicle sales in October jumped 28.3% y-o-y to 247,927 units.

Indonesia's export growth accelerated to 46.3% y-o-y in September, following a revised 35.9% growth rate in August. The Republic of Korea's export growth rate fell to 9.3% in October from 18.8% in September. Malaysia's export growth rose to 16.6% y-o-y in September from 10.9% in August.

Bank of China (Hong Kong) issued US$750 million worth of 5-year bonds with a coupon of 3.75%. Hong Kong, China auctioned HKD3 billion worth of HKSAR bonds at an average yield of .468%. Henderson Land, a Hong Kong, China-based property developer, priced SGD200 million worth of Reg S 5-year bonds at a yield of 3.865%. Daewoo Shipbuilding issued KRW300 billion of 3-year bonds last week with a coupon rate of 4.41%. Also, Industrial Bank of Korea raised a total of KRW700 billion worth of bonds, ranging from 1-year zero coupon bonds (KRW300 billion) to 15-year bonds with a 4.58% coupon (KRW50 billion). Petron Corporation raised PHP3.6 billion by issuing fixed-rate bonds to institutional investors. First Metro Investment Corp. (FMIC) issued 5-year

bonds with a coupon of 4.6301% in FMIC's first debt sale, which has a target of PHP5 billion-PHP7 billion. Philippine Long Distance Telephone Co. (PLDT) is issuing PHP5 billion worth of fixed-rate notes consisting of 5-, 7- and 10-year tenors with yields of 5.4692%, 5.4963%, and 6.2188%, respectively. Siam Cement issued THB10 billion worth of 4-year bonds at a coupon rate of 4.25%.

Net foreign investment into the Republic of Korea's local currency (LCY) bonds surged KRW1,594.4 billion in October, following a net outflow of KRW2.5 billion in September.

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

CAsia Bond Monitor September 2011

10-Year Selected LCY Government Security Yields Close of 4 November 2011 basis point change from

Previous Day* Markets Previous Week*Latest Closing 1-Jan-11*US 2.03 -4.07 -28.40 -126.08EU 1.82 -9.00 -35.60 -114.00Japan 0.99 -0.50 -5.10 -13.50PRC 3.71 -2.00 -3.00 -20.00Hong Kong, China 1.36 5.50 -20.70 -149.70India 8.96 6.70 10.60 103.80Indones ia 6.22 -8.70 -14.00 -138.80Malays ia 3.75 -0.50 -3.80 -29.30Korea, Rep. of 3.83 2.00 -10.00 -69.00P

Selected Benchmark Yield Curves - Local Currency Government Bonds

Policy Rate versus Inflation Rate Charts

Government Security Yields

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

2-versus-10 Yield Spread Chart

hilippines 5.75 -1.85 5.71 -13.81ingapore 1.68 0.00 -9.00 -103.00hailand 3.41 -1.00 2.60 -32.00

STViet Nam 12.67 16.70 0.00 91.70

-28.40

-35.60

-5.10

-3.00

-20.70

10.60

-14.00

-3.80

-10.00

0.00

5.71

-9.00

2.60

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Summary Text of News Articles

Consumer Price Inflation Eases in Indonesia and Republic of Korea, Rises in Thailand and Philippines in October ....................................................................................................................... Consumer price inflation in Indonesia slowed to 4.4% year-on-year (y-o-y) in October from 4.6% in September on account of lower prices for most food items. On a month-on-month (m-o-m) basis, consumer price inflation fell 0.1% in October after rising 0.3% in the previous month. Core inflation, which excludes volatile food and oil prices, eased to 4.4% y-o-y from 4.9% in September.

Consumer price inflation in the Republic of Korea eased to 3.9% y-o-y in October from 4.3% in September. The easing was mainly due to a mild 2.2% y-o-y increase in food prices for the month. On a m-o-m basis, consumer prices fell 0.2% in October as food costs declined 2.0%.

In the Philippines, consumer price inflation quickened to 5.2% y-o-y in October from 4.8% in September. Market analysts' median estimate for consumer price inflation in October was 5.0%. Increases in consumer price levels were driven mostly by oil prices as inflation in the housing, water, light, and fuel category rose to 6.5% y-o-y in October from 5.7% in September. Food price inflation also contributed, rising to 5.7% y-o-y in October from 5.0% in September. The Bangko Sentral ng Pilipinas (BSP) noted that the acceleration in inflation in October was due to a low base-effect and the impact of supply disruptions from inclement weather, and that inflation expectations remain manageable. BSP also noted that it has the flexibility to adjust current monetary policy settings to support economic growth objective of 4.4-5.5% GDP growth for 2011.

In Thailand, consumer price inflation rose to 4.2% y-o-y in October from 4.0% y-o-y in September as massive flooding damaged crops, resulting in a 9.9% y-o-y spike in food prices for the month. On a m-o-m basis, consumer prices increased 0.2% in October following a 0.3% decline in September.

For inflation trends in Indonesia, refer to this link: http://asianbondsonline.adb.org/indonesia/data/marketwatch.php?code=policy_rate_and_inflation_trends

For inflation trends in the Republic of Korea, refer to this link: http://asianbondsonline.adb.org/korea/data/marketwatch.php?code=policy_rate_and_inflation_trends

For inflation 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 Thailand, refer to this link: http://asianbondsonline.adb.org/thailand/data/marketwatch.php?code=policy_rate_and_inflation_trends

Manufacturing Sector Growth Eases in the People's Republic of China and Viet Nam, Continues to Contract in Singapore in October .......................................................................................................................

The People's Republic of China's (PRC) manufacturing and non-manufacturing sectors registered a slowdown in growth in October, according to data released by the China Federation of Logistics and Purchasing. The manufacturing purchasing managers' index (PMI) fell to 50.4 in October from 51.2 in August, while the non-manufacturing PMI fell to 57.7 from 59.3 over the same period.

According to the Singapore Institute of Purchasing and Materials Management, the country's PMI rose slightly to 49.5 in October from 49.4 in September. Singapore's manufacturing activity still contracted for the fourth straight month despite the marginal increase in the PMI. The contraction was due to a decline in new orders and new export orders. On the other hand, the electronics sector posted an expansion, with the electronics PMI climbing to 52.1 in October after 3 consecutive months of contraction. The increase in the electronics PMI was attributed to an increase in new orders from overseas and domestic markets.

Viet Nam's index of industrial production (IIP) rose 5.3% y-o-y in October following an increase of 12.0% in September. On a m-o-m basis, the IIP rose 5.2% in October. The IIP increased 7.0% year-to-date in the first 10 months of the year, with the mining industry component declining 0.7%, the processing industry rising 10.2%, and the production and distribution of electricity, gas, and water rising 9.4%.

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Summary Text of News Articles

Retail Sales Continue to Grow in Hong Kong, China and Viet Nam; Japan Domestic Vehicle Sales Jump in October .......................................................................................................................

Hong Kong, China's retail sales grew 24.1% y-o-y in September from 29.0% in August. According to the government, retail sales growth in September was driven by tourist spending and strong local demand. By commodity, sales of electrical goods and photographic equipment increased the most at 33.0% y-o-y, followed by jewelries, watches, clocks, and other valuable gifts at 28.9%.

Viet Nam's retail sales of consumer goods and services in the first 10 months of this year were reached VND1,561 trillion on growth of 23.1% y-o-y. The trade business accounted for 79% of the total (VND1,232 trillion), with sales rising 23.3% y-o-y; hotels and restaurants accounted for 11% of the total (VND173 trillion) with sales growth of 23.8% y-o-y; the services sector accounted for 9% of the total (VND141 trillion) with sales growth of 21.6%; and the tourist industry accounted for 1% of the total (VND15 trillion) with sales rising 16.8% y-o-y.

In Japan, domestic vehicle sales jumped 28.3% y-o-y to 247,927 units in October. Vehicle production levels have normalized following supply chain disruptions in the wake of the 11 March earthquake and tsunami. October automobile sales were the second highest monthly total since April; September was the highest at 313,790 units. The base effect of sales of only 193,258 units in October 2010-following the expiry of a government reward scheme to promote the sale of environmentally friendly cars-was also a factor in the robust level of y-o-y growth in sales.

Export Growth Accelerates in Indonesia and Malaysia, Slows in the Republic of Korea ....................................................................................................................... Indonesia's export growth accelerated to 46.3% y-o-y in September for exports of US$17.8 billion, following revised 35.9% growth in August. Oil and gas exports reached US$4.2 billion in September, while non-oil and gas exports totaled US$13.6 billion. Meanwhile, imports grew at a much faster pace of 56.4% y-o-y in September, compared with revised 23.9% growth a month earlier. A trade surplus of US$2.7 billion was recorded in September.

The Republic of Korea's trade surplus widened to US$4.3 billion in October from US$1.6 billion in September on the back of a monthly drop in imports and a mild increase in exports. Exports of goods rose slightly to US$47.4 billion in October from US$46.8 billion in September. However, the y-o-y export growth rate fell to 9.3% in October from 18.8% in the previous month. On the other hand, merchandise imports declined to US$43.1 billion in October from US$45.3 billion in September. The y-o-y import growth rate also slipped to 16.4% for the month from 29.3% in the previous month.

In Malaysia, export growth rose to 16.6% y-o-y in September from 10.9% in August, with almost all major sectors posted increases in exports. Exports to Association of South East Asian Nations (ASEAN) rose 10.6% y-o-y in, while shipment to the PRC increased by 34.6% y-o-y in September. Meanwhile, imports grew 12.9% y- o-y in September, higher than the previous month's 6.9%. During the 9 months, total exports increased by 8.3% to MYR513.6 billion while total imports rose by 8.9% to MYR424.4 billion. In January-September, Malaysia's trade surplus stood at MYR89.2 billion.

Bank of China (Hong Kong) Issues US$ Bonds; Hong Kong, China Issues HKSAR Bonds; Henderson Land Prices SGD Bonds; Daewoo Shipbuilding and Industrial Bank of Korea Issue KRW Bonds;

Petron, FMIC, and PLDT Issue PHP Bonds; Siam Cement Issues THB Bonds ....................................................................................................................... Bank of China (Hong Kong) issued US$750 million worth of 5-year bonds with a coupon of 3.75%. The bulk of investors were from Asia, taking 80% of the total issue size. Hong Kong, China auctioned HKD3 billion worth of government bonds under the Institutional Bond Issuance Programme HKSAR Bonds) via the reopening of an existing 5-year bond last week. The average yield was .468%. Henderson Land, a Hong Kong, China-based property developer, priced SGD200 worth of Reg S 5-year bonds at a yield of 3.865% under the company's medium-term note program. The majority of investors were from Singapore and a smaller number were from Hong Kong, China.

In the Republic of Korea, Daewoo Shipbuilding issued KRW300 billion of 3-year bonds last week. The coupon rate was set at 4.41%. Also, Industrial Bank of Korea raised a total of KRW700 billion worth of bonds. The issue comprised a 1-year zero coupon bond that amounted to KRW300 billion and a 0.75-year zero coupon bond worth KRW150 billion; a

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Summary Text of News Articles

Bank of China (Hong Kong) Issues US$ Bonds; Hong Kong, China Issues HKSAR Bonds; Henderson Land Prices SGD Bonds; Daewoo Shipbuilding and Industrial Bank of Korea Issue KRW Bonds;

Petron, FMIC, and PLDT Issue PHP Bonds; Siam Cement Issues THB Bonds (cont...) ....................................................................................................................... 2-year bond worth KRW200 billion with a 3.78% coupon rate; and a KRW50 billion 15-year bond at a coupon rate of 4.58%.

In the Philippines, Petron Corporation, the country's largest oil refiner, raised PHP3.6 billion through an issue of fixed-rate bonds to institutional investors. ING Bank NV was the arranger for the issue. First Metro Investment Corp. (FMIC) launched a 5-year bond offering with a coupon of 4.6301% per annum. Standard Chartered Bank has been named as the underwriter for the issue, which is FMIC's first debt sale and has a target size of PHP5 billion-PHP7 billion. Philippine Long Distance Telephone Co (PLDT) will issue PHP5 billion worth of fixed-rate notes on 8 November. The notes consisting of 5-, 7-, and 10-year tenors, will yield 5.4692%, 5.4963%, and 6.2188%, respectively. The notes will be sold to 16 primary institutional lenders. The proceeds will be used for capital expenditures and debt refinancing. HSBC and FMIC were named as arrangers.

In Thailand, Siam Cement issued THB10 billion worth of 4-year bonds at a coupon rate of 4.25% last week.

Net Foreign Investment in Republic of Korea's LCY Bonds Surges in October ....................................................................................................................... Net foreign investment in the Republic of Korea's local currency (LCY) bond market surged to KRW1,594.4 billion in October, following net outflows of KRW2.5 billion in September. The largest net bond investment in October came from investors in the United States (US), amounting to KRW788.1 billion, followed by Malaysia and the PRC, amounting to KRW508.7 billion and KRW376.3 billion, respectively.

At end-October, foreign investors' holdings of Korean LCY bonds stood at KRW86,675.2 billion, up 16.8% year-to-date. US investors were the largest holders of Korean LCY bonds at end-October, accounting for 22.2% of the total.

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

3-Month Selected LCY Government Security Yields

Close of 4 November 2011

PreviousDay*

PreviousWeek* 1-Jan-11*

US -0.01 -0.51 -0.51 -12.48EU 0.44 -4.60 -2.10 3.90Japan 0.10 0.00 0.00 -2.40PRC 2.96 -6.00 -12.00 -22.00Hong Kong, China 0.11 0.00 1.00 -17.00India 8.64 -1.00 1.00 154.00Malaysia 2.99 0.20 0.70 20.60Korea, Rep. of 3.34 0.00 0.00 83.00Philippines 0.90 15.42 -21.50 -29.50Singapore 0.29 0.00 2.00 -10.00Thailand 3.38 0.12 -3.50 140.83

basis point change fromLatest ClosingMarkets

-0.51

-2.10

0.00

-12.00

1.00

1.00

0.70

0.00

-21.50

2.00

-3.50

10-Year Selected LCY Government Bond Yields

Close of 4 November 2011

PreviousDay*

PreviousWeek* 1-Jan-11*

US 2.03 -4.07 -28.40 -126.08EU 1.82 -9.00 -35.60 -114.00Japan 0.99 -0.50 -5.10 -13.50PRC 3.71 -2.00 -3.00 -20.00Hong Kong, China 1.36 5.50 -20.70 -149.70India 8.96 6.70 10.60 103.80Indonesia 6.22 -8.70 -14.00 -138.80Malaysia 3.75 -0.50 -3.80 -29.30Korea, Rep. of 3.83 2.00 -10.00 -69.00Philippines 5.75 -1.85 5.71 -13.81Singapore 1.68 0.00 -9.00 -103.00Thailand 3.41 -1.00 2.60 -32.00Viet Nam 12.67 16.70 0.00 91.70

Marketsbasis point change from

Latest Closing

-28.40

-35.60

-5.10

-3.00

-20.70

10.60

-14.00

-3.80

-10.00

5.71

-9.00

2.60

0.00

Source: Based on data from Bloomberg, LP.

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Benchmark Yield Curves – Local Currency Government Bonds ip: Zoom-in on the table using the Acrobat zoom tool T

Hong Kong, China Indonesia

Source: Based on data from Bloomberg.

JapanEUUS

Viet NamThailandSingapore

PhilippinesMalaysiaKorea, Republic of

China, People’s Rep. of

2.80

3.05

3.30

3.55

3.80

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

Yie

ld (%

)

Time to maturity (years)04-Nov-11 28-Oct-11 21-Oct-11

0.0

0.5

1.0

1.5

2.0

0 2 4 6 8 10 12 14 16

Yie

ld (%

)

Time to maturity (years)04-Nov-11 28-Oct-11 21-Oct-11

5.0

5.8

6.5

7.3

8.0

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

Yie

ld (%

)

Time to maturity (years)

04-Nov-11 28-Oct-11 21-Oct-11

3.00

3.25

3.50

3.75

4.00

4.25

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

Yie

ld (%

)

Time to maturity (years)04-Nov-11 28-Oct-11 21-Oct-11

2.8

3.0

3.2

3.4

3.6

3.8

4.0

4.2

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

Yie

ld (%

)

Time to maturity (years)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0 3 6 9 12 15 18 21 24 27

Yie

ld (%

)Time to maturity (years)

04-Nov-11 28-Oct-11 21-Oct-1104-Nov-11 28-Oct-11 21-Oct-11

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)04-Nov-11 28-Oct-11 21-Oct-11

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)

12.0

12.3

12.5

12.8

13.0

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

Yie

ld (%

)

Time to maturity (years)04-Nov-11 28-Oct-11 21-Oct-11 04-Nov-11 28-Oct-11 21-Oct-11

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0 4 8 12 16 20 24 28 32

Yie

ld (%

)

Time to maturity (years)04-Nov-11 28-Oct-11 21-Oct-11

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0 5 10 15 20 25 30

Yie

ld (%

)

Time to maturity (years)

0.00.30.50.81.01.31.51.82.02.32.5

0 4 8 12 16 20 24 28 32 36 40

Yie

ld (%

)

Time to maturity (years)04-Nov-11 28-Oct-11 21-Oct-11

04-Nov-11 28-Oct-11 21-Oct-11

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

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

-50 0 50 100 150 200 250 300 350

China, People's Rep. of

Hong Kong, China

Indonesia

Korea, Rep. of

Malaysia

Philippines

Singapore

Thailand

Viet Nam

U.S.

E.U.

Japan

basis points

4-Nov-11

28-Oct-11

21-Oct-11

Source: Based on data from Bloomberg LP.

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Policy Rate versus Inflation Rate Charts ip: Zoom-in on the table using the Acrobat zoom tool T

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

Philippines Thailand

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) 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

6.10

1-year Lending Rate

6.56

-4

-2

0

2

4

6

8

10

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

Inflation Rate

5.8HKMA Base

Rate

0.5

-4

-2

0

2

4

6

8

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

9.72Repurchase Cut-off Yield

Inflation Rate

8.5

-2

0

2

4

6

8

10

12

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

Inflation Rate

3.40

Overnight Policy Rate

3.00

-4

-2

0

2

4

6

8

10

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

Inflation Rate

3.9

7-Day Repo Rate

3.25

0

4

6

8

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

2

c

Inflation Rate4.42

6.5

0

2

4

6

8

10

12

14

16

18

20

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

BI Rate

Inflation Rate

5.2

Overnight Reverse

Repo Rate

4.50

0

2

4

6

8

10

12

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

Inflation Rate

4.19

1-Day Repo Rate

3.50

-6

-4

-2

0

2

4

6

8

10

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

Inflation Rate

21.59

Prime Lending Rate

9.00

0

3

6

9

12

15

18

21

24

27

30

Jan-06 Dec-06 Dec-07 Dec-08 Nov-09 Nov-10 Nov-11

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Credit Default Swap Spreads & Exchange Rate Indexes ip: Zoom-in on the table using the Acrobat zoom tool T

Credit Default Swap Spreads - Senior 5-year*

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

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

Mid

spre

ad in

bas

is po

ints

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

50

60

70

80

90

100

110

120

130

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120

130

Jan-07 Aug-07 Mar-08 O ct-08 Jun-09 Jan -10 Aug-10 Mar-11 Nov-11

China , P e ople 's Re p. of

Indone s ia

Ma la ys ia

P hilippine s

Tha ila nd

S inga pore

Kore a , Re p. of

V ie t Na m

0

200

400

600

800

1,000

1,200

1,400

Dec-07 Dec-08 Dec-09 Nov-10 Nov-11

China , P e ople 's Re p. of

Hong Kong, China

Indone s ia

Kore a , Re p. of

J a pa n

Mala ys ia

P hilippine s

Tha ila nd

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Debt Security Issuances (1 – 7 November 2011)

PRC 1-Nov 1-year PBOC Bills 3.58 10.00 10.003-Nov 3-month PBOC Bills 3.16 1.00 1.00

HK 1-Nov 33-day Exchange Fund Bills 0.06 0.30 0.3091-day Exchange Fund Bills 0.12 26.56 26.56182-day Exchange Fnd Bills 0.14 9.00 9.00

ID 1-Nov 3-month Treasury Bills 4.72 1,100.001-year Treasury Bills 5.05 2,750.0011-year Treasury Bonds 6.45 1,700.0016-year Treasury Bonds 6.87 450.0021-year Treasury Bonds 7.23 550.00

JP 1-Nov 10-year Japan Government Bonds 1.03 1.00 2,200.00 2,199.103-month Treasury Discount Bills 0.10 5,090.00 5,089.80

KR 31-Oct 91-Monetary Stabilization Bonds 3.49 1,200.00 1,040.00MY 31-Oct 154-day BNM Islamic Notes 2.93 0.50 0.50

364-day BNM Notes 2.89 1.00 1.002-Nov 91-day BNM Islamic Notes 2.93 1.50 1.50

93-day BNM Notes 2.92 1.50 1.50166-day BNM Notes 2.89 1.00 1.00

PH 2-Nov 91-day Treasury Bills 0.92 2.00 2.00181-day Treasury Bills 1.12 3.00 3.00364-day Treasury Bills 1.08 4.00 4.00

SG 31-Oct 91-day Treasury Bills 0.23 4.00 4.00TH 1-Nov 28-day BOT Bills 3.46 15.00 15.00

91-day BOT Bills 3.35 17.00 17.00182-day BOT Bills 3.33 18.00 18.00

2-Nov 7.25-year Government Bond 3.30 3.45 9.00 9.00Sources: Local market sources and Bloomberg, LP.

6,000.00

C o u p o n (in % )

A m o u n t O ffe re d L C Y B illio n s

A m o u n t Is s u e d L C Y B illio n sMark ets

A u c tio n D ate T y p e o f S e c u rity

A v e rag e Y ie ld (% )

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Asia Data Releases (1 - 7 November 2011)

Source: AsianBondsOnline, Bloomberg LP, and Reuters.SEP 08/11: –4.0%

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

Grow th in the PRC’s M2 money supply fell to 13.0% y-o-y in September f rom 13.6% in August due to monetary tightening activities conducted by the central bank.

Export grow th in the PRC fell to 17.1% y-o-y in October f rom 24.5% in August due to continued w eakness in developed economies.

08/10: 8.9%09/10: 6.9%07/11: 9.5%08/11: 10.8%

The value of Malaysia’s manufacturing sales increased 10.8% y-o-y in August, up f rom 9.5% in July.

MalaysiaIndustrial Productiony-o-y, %SEP

11/10 10/10: 6.50%11/10: 6.50%09/11: 6.75%10/11: 6.50%

Malaysia’s industrial production grew 3.0% y-o-y in August, an improvement f rom the 0.5% decline in July.

People’s Republic of ChinaM2 Money Supplyy-o-y, %OCT

Bank Indonesia (BI) unexpectedly cut the benchmark rate by 25 basis points (bps) to 6.5% on 11 October, reversing a 25 bps hike in February and bringing the benchmark rate back to a record-low level.

MalaysiaManufacturing Sales Valuey-o-y, %SEP

11/10 09/10: 2.8%10/10: 2.8%08/11: 2.7%09/11: 2.7%

Grow th in Japan’s M2 money supply remained steady at 2.7% y-o-y in both August and September.

JapanM2 Money Supplyy-o-y, %OCT

PhilippinesExportsy-o-y, %SEP

11/10 08/10: 37.5%09/10: 46.8%07/11: –1.7%08/11: –13.7%

The Philippines’ exports fell 13.7% y-o-y in August follow ing a contraction of 1.7% in July.

11/11–11/15 09/10: 19.0%10/10: 19.3%08/11: 13.6%09/11: 13.0%

11/10

11/10 08/10: 3.9%09/10: 5.7%07/11: –0.5%08/11: 3.0%

People’s Republic of ChinaConsum er Price Indexy-o-y, %OCT

11/09 09/10: 3.6%10/10: 4.4%08/11: 6.2%09/11: 6.1%

The People’s Republic of China’s (PRC) consumer price inf lation dipped slightly to 6.1% year-on-year (y-o-y) in September f rom 6.2% in August.

IndonesiaBI Rate%NOV 10

09/10: 13.3%10/10: 13.1%08/11: 13.5%09/11: 13.8%

Grow th in the PRC’s industrial production accelerated to 13.8% y-o-y in September f rom 13.5% in August.

11/09People’s Republic of ChinaIndustrial Productiony-o-y, %OCTPeople’s Republic of ChinaExportsy-o-y, %OCT

11/10 09/10: 25.1%10/10: 22.9%08/11: 24.5%09/11: 17.1%

11/11 2Q10: 6.7%3Q10: 6.9%1Q11: 7.5%2Q11: 5.1%

Hong Kong, China’s gross domestic product (GDP) grow th fell to 5.1% y-o-y in 2Q11 from 7.5% in 1Q11 due to continued w eakness in developed economies.

Republic of Korea7-Day Repurchase Rate%NOV 11

11/11 10/10: 2.25%11/10: 2.50%09/11: 3.25%10/10: 3.25%

The Bank of Korea’s Monetary Policy Committee decided in its 13 October meeting to keep steady the 7-day repurchase rate at 3.25%.

Hong Kong, ChinaGDPy-o-y, %3Q11

MalaysiaOvernight Rate%NOV 11

11/11 10/10: 2.75%11/10: 2.75%09/11: 3.00%10/10: 3.00%

Bank Negara Malaysia’s Monetary Policy Committee decided in its policy meeting on 8 September to maintain the overnight policy rate at 3.0%.

PhilippinesM3 Money Supplyy-o-y, %SEP

11/11 08/10: 8.8%09/10: 10.5%07/11: 8.3%08/11: 9.4%

M3 money supply grow th in the Philippines rose to 9.4% y-o-y in August f rom 8.3% in July.

JapanAnnualized GDP (prelim inary)%3Q11

11/14 2Q10: –0.7%3Q10: 4.0%1Q11: –3.7%2Q11: –2.1%

Japan’s annualized GDP grow th w as –2.1% in 2Q11, compared w ith –3.7% in 1Q11.

JapanIndustrial Production (forecast)y-o-y, %

11/14 08/10: 15.5%09/10: 12.1%07/11: 0.4%

Japan’s industrial production contracted 4.0% y-o-y in August, follow ing 0.4% grow th in July, as the global slow dow n and the yen’s appreciation reduced demand.

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News Articles: Sources for Further Reading

Consumer Price Inflation Eases in Indonesia and Republic of Korea, Rises in the Philippines and Thailand in October

• Easing Inflation Clears the Way for Interest Rate Cut Jakarta Globe (01 November 2011)

• Consumer Price Index in October 2011 Statistics Korea (01 November 2011)

• Summary Inflation Report Consumer Price Index, October and September 2011

National Statistics Office (04 November 2011)

• Thailand Inflation Holds Above 4% as Floods Stoke Food Costs

Bloomberg (01 November 2011)

Manufacturing Sector Growth Eases in the People’s Republic of China and Viet Nam; Continues to Contract in Singapore in October

• China's PMI drops to 50.4% in Oct. China.org.cn (01 November 2011)

• China's non-manufacturing sector growth slows in Oct. Xinhua (03 November 2011)

• S'pore's manufacturing contracts for 4th straight month Channel News Asia (01 November 2011)

• Vietnam's industrial production index rise 7pct in Jan-Oct: GSO

Intellasia (02 November 2011)

Retail Sales Continues to Grow in Hong Kong, China and Viet Nam; Japan Domestic Vehicle Sales Jumps in October

• Provisional statistics of retail sales for September 2011 Census and Statistics Department (01 November 2011)

• Social and economic situation, 10 months of 2011 General Statistics Office of Vietnam (31 October 2011)

• Japan auto sales jump 28% in October Japan Today (02 November 2011)

Export Growth Accelerates in Indonesia and Malaysia, Slows in the Republic of Korea

• RI's overall imports up 56.4 percent in September Antara News (02 November 2011)

• RI's non-oil/non-gas exports up 35 percent in September Antara News (02 November 2011)

• Trade Figures for October Ministry of Knowledge Economy (03 November 2011)

• Preliminary Release of Malaysia External Trade Statistics September 2011 Department of Statistics Malaysia (04 November 2011)

BOC HK Issues US$ Bond; Henderson Land Prices SGD Bonds; Hong Kong, China Issues HKSAR Bonds, Daewoo Shipbuilding and Industrial Bank of Korea Issue KRW Bonds; Petron, FMIC and PLDT Issue PHP bonds; Siam Cement Issues THB Bonds

• Bank of China bonds widen amid Greece jitters FinanceAsia (02 November 2011)

• Tender results of the re-opening of 5-year Government

Bonds under the Institutional Bond Issuance Programme Hong Kong Monetary Authority (02 November 2011)

• BONDS: Henderson Land catches window for S$200m five-year issue (Corrected) IFRAsia (01 November 2011)

• Petron raises P3.6B from debt paper sale The Inquirer (31 October 2011)

• FMIC eyes P7B from 5-year bonds as it readies debt sale Business World (31 October 2011)

• PLDT Issuing P5-B Worth FRNs Manila Bulletin (03 November 2011)

Net Foreign Investment Into Republic of Korea’s LCY Bonds Surges in October

• Foreign Investments in Domestic Securities in October 2011 Financial Supervisory Service (02 November 2011)

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