Foreign investors were net sellers of Asian bonds in August, the first monthly
outflow in five months, as a global bond sell-off and expectations of further
monetary tightening by major central banks reduced demand for the region's debt.
Regulators and the regional bond market association reported combined net sales
of $457 mln across Korea, Malaysia, India, Indonesia and Thailand. Analysts said
expectations of extended restrictive policy from major central banks and
concerns over heavier government bond supply in some developed markets pushed
investors to trim emerging-market bond exposure. Korea saw the largest outflow,
with foreigners selling about $5.4 bln of domestic bonds after four months of
net buying.
