FW: AsianBondsOnline Newsletter (30 October 2017)

To read the full report, data and graphs go to
http://asianbondsonline.adb.org/newsletters/abowdh20171030.pdf?src=newslet
ter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 23 - 27 October 2017

Last week, the European Central Bank, in its monetary policy meeting,
announced that it would begin to taper its asset purchases from the
current EUR60 billion per month to EUR30 billion per month starting in
January 2018. The reduced asset purchases are expected to run through
September 2018. The central bank also kept its key policy rates unchanged
and indicated that it expects to do so for a considerable period even
after the end of its asset purchases.

* The Republic of Korea's gross domestic product growth accelerated
to 3.6% year-on-year (y-o-y) in the third quarter of 2017 from 2.9% y-o-y
in the second quarter, based on advance estimates from the Bank of Korea.
The higher growth was driven by a rebound in exports and higher annual
increases in both private and government consumption. By industry, it was
driven by more rapid growth in manufacturing; electricity, gas, and water
supply; and services. On a quarter-on-quarter basis, the Republic of
Korea's economy grew 1.4% in the third quarter of 2017, following a 0.6%
expansion in the previous quarter.

* Consumer price inflation in Hong Kong, China fell to 1.4% y-o-y in
September from 1.9% y-o-y in August. The fastest-growing items were meals
purchased away from home and housing rentals. In Japan, inflation remained
unchanged in September from the previous month at 0.7% y-o-y. Food prices
posted a higher annual increase of 1.0% y-o-y, up from 0.9% y-o-y in
August. Singapore's consumer price inflation was unchanged in September at
0.4% y-o-y.

* Hong Kong, China's exports rose 9.4% y-o-y in September after
increasing 7.4% y-o-y in August. Imports rose 9.7% y-o-y, up from 7.7%
y-o-y. Hong Kong, China recorded a trade deficit of HKD44.7 billion for
September.

* Singapore's manufacturing output increased 14.6% y-o-y in
September, slower than the 19.5% y-o-y gain posted in August. The
electronics cluster, which accounts for 27.4% of the total manufacturing
index, led the growth with a 33.2% y-o-y increase in September.

* The People's Republic of China (PRC) last week priced its first
USD-denominated bonds since 2004. The PRC priced USD1 billion worth of
5-year bonds at a coupon rate of 2.125% and USD1 billion of 10-year bonds
at a coupon rate of 2.625%. The bonds are issued under the PRC's
Regulation S provisions and are unrated. In addition, the bonds will be
qualified under Hong Kong, China's banking regulations as a high-quality
liquid asset for regulatory purposes and are repo-eligible.

* Last week, the Government of Indonesia raised a total of IDR8.9
trillion from the sale of retail treasury bonds, missing the initial
indicative target of IDR20 trillion and the subsequently reduced target of
IDR13.4 trillion. The bonds carry a coupon rate of 5.85% and have a
maturity of 3 years.

* Local currency government bond yields rose for all tenors in the
PRC; Hong Kong, China; and Singapore. Yields rose for most tenors in
Indonesia, the Republic of Korea, Malaysia, Philippines, Thailand, and
Viet Nam. Yield spreads between the 2-year and 10-year tenors widened in
all markets except the Republic of Korea and Viet Nam.

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