Flows into Asia Bond Markets Raise Risk of Asset Price Bubbles

MANILA, PHILIPPINES – Emerging East Asia’s local currency bond markets continued to expand in 2012, signaling ongoing investor interest in the region’s fast-growing economies but also raising the risk of asset price bubbles, said the Asian Development Bank’s (ADB) latest Asia Bond Monitor.

“Emerging East Asia is much more resilient than it used to be but governments still need to be careful that the surge in capital inflows doesn’t fuel excessive rises in asset prices and that they are prepared for a possible reversal in the flows when the economies of the US and Europe pick up again,” said Thiam Hee Ng, Senior Economist in ADB’s Office of Regional Economic Integration.

Read more at http://www.adb.org/news/flows-asia-bond-markets-raise-risk-asset-price-bubbles

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