4 July 2011Indonesia's Finance Ministry reported last week that it expects its 2011 budget deficit to be in a range of 1.9%-2.1% of GDP. The Philippine fiscal deficit was PHP9.5 billion in the first 5 months of the year. Meanwhile, Viet Nam's budget deficit reached VND27.8 trillion in the first half of 2011. The People's Republic of China’s (PRC) local government debt stood at CNY10.7 trillion at end-2010 according to the National Audit Office. Trade deficits were recorded for May in Hong Kong, China; for January-April in the Philippines; and for January-June in Viet Nam; amounting to HKD35.7 billion, USD4.6 billion, and USD6.7 billion, respectively. In contrast, trade surpluses were posted for June in the Republic of Korea (USD3.3 billion), and for May in Indonesia (USD3.5 billion) and Thailand (USD274 million). The Republic of Korea registered a current account surplus in May of USD2.3 billion. Viet Nam's real GDP growth rate in 1H11 stood at 5.6% y-o-y, improving to 5.7% in 2Q11 from 5.4% in 1Q11. Industrial output in Japan and the Republic of Korea accelerated in May by 5.7% and 1.7% m-o-m, respectively, while also expanding 4.6% m-o-m in Viet Nam in June. In contrast, growth in the Philippines' volume of production index eased to 2.6% y-o-y in April from 9.7% in the previous month, while manufacturing production in Thailand contracted 3.9% y-o-y in May. Malaysia raised USD2.0 billion from the sale of 5- and 10-year sukuk (Islamic bonds) last week. In Malaysia, Telekom Malaysia issued a MYR300 million 10-year Islamic note; Antara Steel Mills sold a MYR300 million Islamic bond in five tranches; and Sabah Development Bank priced a MYR300 million 5-year Islamic bond last week. Meanwhile Korea Eximbank priced a C Key Developments in Asian Local Currency Markets asianbondsonline.adb.org onsumer price inflation in Indonesia eased to 5.5% year-on-year (y-o-y) in June from 6.0% in May. In the Republic of Korea, consumer price inflation rose to 4.4% y-o-y in June from 4.1% in May, mainly due to higher food, housing, and utility costs. Thailand's consumer price inflation was 4.1% y-o-y in June, compared with 4.2% in May. In Japan, inflation remained steady in both April and May at 0.3% y-o-y. Asia Bond Monitor March 2011 10-Year Selected LCY Government Security Yields Markets read more Close of 1 July 2011 basis point change from Latest Closing Previous Day* Previous Week* 1-Jan-11* 3.18 3.03 1.14 3.89 2.27 8.36 7.53 3.94 4.33 6.25 2.34 3.88 12.62 2.23 0.90 0.00 0.00 0.00 2.80 -2.20 0.90 4.00 -6.28 3.00 0.00 7.00 20.00 3.00 -5.00 6.50 10.70 3.00 1.10 7.00 -7.05 6.00 8.80 -8.00 31.87 31.87 20.00 3.00 -5.00 6.50 10.70 3.00 1.10 7.00 -7.05 6.00 8.80 -8.00 US EU Japan PRC Hong Kong, China India Indonesia Malaysia Korea, Rep. of Philippines Singapore Thailand Viet Nam -11.12 7.10 1.20 -2.00 -58.50 43.90 -7.90 -10.00 -19.00 35.90 -37.00 15.70 87.00 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 JPY80 billion triple-tranche samurai bond last week. In the PRC last week, Industrial and Commercial Bank of China (ICBC) sold CNY38.0 billion worth of subordinated bonds, while in Indonesia Bank Permata issued IDR1.75 trillion of subordinated debt last week. In the Philippines, Manila Electric Co. issued PHP5.0 billion in 7- and 10-year notes and Filinvest Land offered PHP3.0 billion of retail bonds. In Thailand, Noble Development sold THB1.5 billion of 3year bonds and Provincial Waterworks Authority issued THB1.0 billion of 8-year bonds last week. Government bond yields fell last week for all tenors in the PRC and Viet Nam, and for most tenors in Indonesia and the Philippines. Yields rose for all tenors in the Republic of Korea, and for most tenors in Hong Kong, China; Malaysia and Thailand. Yield movements were mixed in Singapore. Yield spreads between 2- and 10 year maturities widened in most emerging East Asian markets. ……………………………………………………………………………………………………………..……………..…… 1 ..... Philippines Records PHP9.... Indonesia's Finance Ministry Forecasts a 2011 Budget Deficit Equal to 1..php ……………………………………………………………………………………………………………………….........adb.......7 trillion at end-2010.7% and 124...54% year-on-year (y-o-y) from 5......2%.php?code=policy_rate_and_inflation_trends ........6%... 2 .. which is about 23% of the ministry's targeted VND130... The Finance Ministry is scheduled to discuss the 2011 revised state budget with the House of Representatives in July.. the CPI rose 0............. with the remainder comprising debt guarantees and loans that might potentially be repaid by local governments..6% in 2010..9%-2.3% y-o-y in May for the second straight month.3 percentage points from the previous month to 4......... local governments are explicitly responsible for repaying CNY6... On a month-on-month (m-o-m) basis...... inflation based on the consumer price index (CPI) increased 0.. while government expenditures totaled VND355.. In the Republic of Korea.org/japan/data/marketwatch.....php?code=policy_rate_and_inflation_trends For trends in Thailand's inflation rate..............) Over the January-May period.......2% in June from zero in May..1% of gross domestic product (GDP)......9%-2.......98% in May..... receipts at the Bureau of Customs' shrank 0.. Remains Unchanged in Japan ................. revenue grew 16.... housing... while on a m-o-m basis inflation increased to 0.. amounting to PHP9....... Summary Text of News Articles Consumer Price Inflation Eases in Indonesia and Thailand....………..... In Japan......adb..... refer to this link: http://asianbondsonline.... refer to this link: http://asianbondsonline............8% of GDP..6 trillion.... On the other hand........…..php?code=policy_rate_and_inflation_trends For trends in the Republic of Korea's inflation rate.1% y-o-y in June......ASIANBONDSONLINE asianbondsonline....... The upward trend in consumer prices was mainly due to increases in the costs of food........... In Thailand.....adb.. For statistics on Indonesia's fiscal balance... According to Viet Nam's Ministry of Finance.. refer to this link: http://asianbondsonline............... Viet Nam's Budget Deficit Reaches VND27.. (In January-April....... Consumer price inflation in Indonesia eased for a fifth straight month in June to 5.....adb.... Government revenue amounted to VND327......org DEBT HIGHLIGHTS ………………………………………………………………………………………………………………………... despite the government's plan to raise fuel subsidy quotas....3%...... the government reported a modest fiscal surplus of PHP61 million... The Philippines's year-to-date fiscal position fell into deficit in May.....5 Billion Budget Deficit in January-May.adb...55% in June from 0............ the country's budget deficit during the first 6 months of 2011 reached VND27.3% of GDP... For trends in Indonesia's inflation rate.. refer to this link: http://asianbondsonline......7 Trillion at end-2010 . slightly lower than the previous month's 4..8 trillion.... and utilities............ consumer price inflation rose to 0...6 trillion budget deficit for the full year.... Rises in the Republic of Korea..org/korea/data/marketwatch. respectively..........org/indonesia/data/marketwatch....7 trillion...7 trillion.4% y-o-y in June... however.......12% in May as monthly food price hikes persisted.......org/indonesia/data/macroeconomic_credit.....org/thailand/data/marketwatch...... PRC's Local Government Debt Reached CNY10.......... Viet Nam is targeting a lower fiscal deficit in 2011 equivalent to 5. while the core CPI increased 0...... The People’s Republic of China's (PRC) National Audit Office publicly revealed the size of local governments' aggregated debt for the first time.7% from the same period of last year.... Of the CNY10.5% y-o-y during the same period........ compared with 5. The debts amounted to CNY10....6 billion in May...... The government's initial target for the budget deficit was 1.......8 trillion...adb..3% y-o-y as the Bureau of Internal Revenue and Bureau of the Treasury increased revenue collection by 13... or about 63%.....54 billion in the first 5 months of the year after the government posted a deficit of PHP 9......8 Trillion in 1H11 Indonesia's Finance Ministry reported last week that the 2011 budget deficit would fall within a range of 1. refer to this link: http://asianbondsonline.... consumer price inflation stood at 4.1% of GDP......... Government expenditures amounting to PHP591 billion were down 10.....php?code=policy_rate_and_inflation_trends For trends in Japan's inflation rate...... . In Thailand.... In Indonesia.1 billion....7% of the aggregate import bill...0 billion....4%....adb. Republic of Korea. Viet Nam's Budget Deficit Reaches VND27.1% to 2.. Electronic products...... and Viet Nam..5% to 41... Exports within Asia showed the largest gains... Trade Deficits in Hong Kong.....7 billion was recorded for the month.... Singapore... the trade surplus jumped to USD3.. For statistics on the Republic of Korea's export and import growth rates...5 billion..... accounted for 30.4% y-o-y.... following 21........5 billion in May from USD1.... Import values rose in all product categories except for vehicles and parts.0% y-o-y in May from 6..0%. People's Republic of China (PRC)...7% growth in April.. Imports grew 21. In April.adb...1%...5% between 1H10 and 1H11....... Philippines. while light industrial and handicraft items decreased from 43... Meanwhile. the trade deficit in goods during the first 4 months of 2011 surged 91..3 billion...5% y-o-y in May after rising 32... The export growth rate for the month stood at 14...... total imports in 1H11 rose 25............5% in the previous month.....3% and gold and gold products decreased from 4. In the Philippines..php For statistics on Viet Nam's fiscal balance.4%..adb. Summary Text of News Articles Indonesia's Finance Ministry Forecasts a 2011 Budget Deficit Equal to 1.....php ………………………………………………………………………………………………………………………. China.. mainly due to an increase in prices.... which was 30.....1% in April......... while exports of manufacturing products also grew.1%. respectively. 3 .. respectively...adb.. Meanwhile. Import growth increased to 13.3% y-o-y.. The country's trade deficit in the first 6 months stood at USD6.5 Billion Budget Deficit in January-May...…... the share of heavy industrial and mineral goods as a portion of total exports dropped from 30.. refer to this link: http://asianbondsonline. following growth in April of 4.. and the United Kingdom (UK) declined 6.......7% y-o-y to USD21....... Philippines Records PHP9..9%-2....... a trade deficit of HKD35. while import growth was 27. and 7.......4%.....3 billion in June..org/vietnam/data/macroeconomic_credit.5 billion.. The trade surplus stood at USD274 million in May after posting a deficit of USD477 million in April. following 24.9 billion. total imports expanded 34..0% to 21.... refer to this link: http://asianbondsonline. imports grew 20. exports of automobiles and auto parts continued to contract as a result of decreased automobile production... with exports to Taipei.1 billion...org/philippines/data/macroeconomic_credit..org/korea/data/macroeconomic_credit......php .... Trade Surpluses in Indonesia. In contrast...... led by electrical appliances..6 billion in total exports.1% between 1H10 and 1H11..3% higher than in the same period last year..1% of GDP......2 billion in May. For statistics on the Philippines' fiscal balance... The US remained Viet Nam's top export market with USD7.. On the other hand.... Taipei.. However.8 Trillion in 1H11 (cont…) ... up from a surplus of USD2...2% to 29...7 billion.......8% growth in March. total exports reached USD42.5% y-oy in April.org/philippines/data/macroeconomic_credit... to reach USD5... and Thailand Hong Kong....5% y-o-y. Imports also climbed 48. and Japan..1% y-o-y in May to HKD279..4% y-o-y in May to reach USD19. while exports were up 10.. exports to Japan.0 billion......adb. compared with 26. The Republic of Korea recorded a trade surplus of USD3.3% y-o-y from 37..7 billion in April as export growth accelerated to 45...6% to USD16... China's exports grew 10.....………... In Viet Nam...3% growth in April.China increasing 40.China....... refer to this link: http://asianbondsonline..3% y-o-y in May to reach USD19.4 billion and USD6.......ASIANBONDSONLINE asianbondsonline... followed by the European Union (EU) and the Association of South East Asian Nations (ASEAN) with USD7. total exports grew 17. As a result.6% y-o-y and exports to Thailand increasing 35. The top five sources of imports came from the US.. 2.3 billion in 1H11..2% y-o-y amid a record-high in rice exports... which expanded 11...org DEBT HIGHLIGHTS ………………………………………………………………………………………………………………………...... Exports of agricultural products expanded 74...6 billion.. the United States (US)...4% y-o-y to USD4. refer to this link: http://asianbondsonline.. The share of agriculture and forestry products as a portion of total exports increased from 16..php For statistics on the Philippines' export and import growth rates.......5% in April..8% y-o-y to USD49.. ... miscellaneous manufactures...org/korea/data/macroeconomic_credit... Republic of Korea.7% in March.... Viet Nam's Economy Expands 5.. Overall car production in Thailand is expected to return to normal conditions in 3Q11........ the industrial production growth rate improved to 8... while the industry and construction sector and service sector registered 6..... Growth in the volume of production index (VOPI) in the Philippines eased to 2.org/vietnam/data/macroeconomic_credit..org DEBT HIGHLIGHTS ………………………………………………………………………………………………………………………..php ......... Philippines.6% y-o-y in April from 9... 4 ......2% growth in the same period last year..........7% y-o-y after growing 5.7% y-o-y and 4........3 billion) for the 15th straight month in May on the back of a solid surplus position in the goods account as well as improvements in net dividend payments.... Trade.....adb.................7% in April.... transport equipment.. China........... respectively.. respectively........php Republic of Korea Posts Current Account Surplus for 15th Straight Month in May.. In the Republic of Korea... Industrial Output Growth Increases in Japan..... During the first 6 months of the year... and fisheries sector grew 2.………........... and Viet Nam..3% y-o-y. However..... In 1H11. refer to this link: http://asianbondsonline.. refer to this link: http://asianbondsonline.. The goods account surplus in May was USD1. The Republic of Korea posted a current account surplus (USD2............ refer to this link: http://asianbondsonline...1% y-o-y....... In January-June.. Viet Nam's real GDP grew 5.. refer to this link: http://asianbondsonline.... GDP expanded 5.. while the primary income account recorded a surplus of USD520 million in May after posting a deficit of USD1...9% in the previous month... For statistics on Thailand's export growth rates.) The Ministry of Economy...... On a m-o-m basis.7% y-o-y..6% m-o-m in June.....adb...... gas......... Car production fell 32............. the industrial production index climbed 1..........…....7% m-o-m in May after declining 1..... Japan's industrial output expanded 5.......... the index of industrial production (IIP) grew 12. the country's agriculture.3% in March.....7% m-o-m in May..... forestry.......... In Viet Nam.. the MPI's performance in May was an improvement from April's decline of 8....... mainly due to a decline in the production of basic metals........ the second straight monthly increase...... the VOPI fell 4..8 million...php For statistics on Viet Nam's GDP growth rate...3% as Japanese auto parts makers were affected by the March earthquake and tsunami......8% and 12. According to the Office of Industrial Economics....5% and 6...3% in May from 6.....7 billion.....5% in July...... its prior projection of an MPI increase of 6%-8% for the full-year 2011 will be reduced as the index has now fallen in 4 consecutive months. Summary Text of News Articles Trade Deficits in Hong Kong..6% m-o-m after plunging 15....3% in April.. and Industry forecasts factory output will rise 5.... down from 6....... For statistics on the Republic of Korea's current account balance.....org/thailand/data/macroeconomic_credit.php For statistics on Viet Nam's export growth rates... furniture and fixtures.adb.ASIANBONDSONLINE asianbondsonline. and fabricated metal products contracted during the month............... The services and secondary income accounts also registered surpluses of USD15...adb.1% growth rates. and water sector rose 10.....7% y-o-y........ Slows in the Philippines and Falls in Thailand Thailand's manufacturing production index (MPI) fell 3. In 2Q11.... the IIP increased 9.....adb... Republic of Korea... ……………………………………………………………………………………………………………………….........org/vietnam/data/macroeconomic_credit.5% y-o-y in May..6 billion in the previous month............. and Thailand (cont…) . while car sales shrank 33..5 million and USD15....4% in the previous quarter...... respectively..... (In April factory output rose 1. which was attributed to a drop in automobile production and a lack of auto parts.........3 billion in April...1% y-o-y...6% in 1H11 ..... Trade Surpluses in Indonesia. the mining and quarrying sector and the manufacturing industry expanded production 2.. while production of the power... following a surplus of USD3....6% y-o-y in 1H11........ and Viet Nam. chemical products.. The output in leather products......9% y-o-y in May. On a y-o-y basis...3% m-o-m in June and 0.... ..47%. respectively. Subordinated Debt.37% and have a maturity of 366 days.. Wakala Global Sukuk Berhad... Filinvest Land offered PHP3 billion of retail bonds last week with the coupon rate set at 6......0 billion of fixed-rate notes comprising PHP500 million of 7-year and PHP4......5% and rated AAA by RAM Ratings.... In Malaysia....php .....php For statistics on Viet Nam's industrial production growth rate....0 billion in commercial paper.43%.org/thailand/data/macroeconomic_credit. and 8% to the US. Proceeds from the issuance will be used to refinance outstanding paper maturing in August and to fund working capital.6 billion of 3-year bonds at a 1..... Noble Development and Provincial Waterworks Authority Issues THBDenominated Bonds. with the 3-year tranche paying 4...... (Meralco) issued PHP5................. 5 . Antara Steel Mills sold a five-tranche MYR300 million Islamic note that was guaranteed by national bond guarantee agency Danajamin Nasional. and Commercial Paper Issuance in the PRC. The sukuk was issued via a special purpose vehicle... the government sold USD2. Guangong Guangxin Holdings........ the 4-year at 4....93%..... its second samurai issuance since June 2007............... The sukuk was rated A........ Slows in the Philippines and Falls in Thailand (cont…) ....... 14% to Europe.... Summary Text of News Articles Industrial Output Growth Increases in Japan. Republic of Korea..... In the Philippines..... Malaysia Issues USD2.......org DEBT HIGHLIGHTS ………………………………………………………………………………………………………………………. The bond is callable after 15 years..... and Viet Nam.... Telekom Malaysia issued MYR300 million worth of 10-year Islamic notes last week..02%...... Jiangsu BeijingShanghai Expressway issued CNY1.......... Each tranche is worth MYR60 million... The other two tranches were JPY11. Korea Eximbank Prices JPY80 Billion Samurai ..991%.. refer to this link: http://asianbondsonline....0 billion of 20-year subordinated bonds at a coupon rate of 5... 22% to the rest of Asia.... which primarily produces building materials. China Cheng Xin International Credit Rating rated the issuance as A-1.... establishing a new benchmark in Islamic capital markets..0 Billion of Fixed-Rate Notes.2 billion worth of 5-year sukuk was priced at 2......adb... Also... The USD1........32%..... Local Currency Sukuk Issuance from Telekom Malaysia.............0 billion worth of medium-term notes (MTNs).adb..................... refer to this link: http://asianbondsonline.06% coupon and a JPY10.. The bond was rated AA1 by RAM Ratings..……….. In the PRC..... Korea Eximbank priced JPY80 billion worth of triple-tranche samurai bonds last week........ refer to this link: http://asianbondsonline...4 billion with a coupon rate of 0................ASIANBONDSONLINE asianbondsonline............. The MTNs carry a tenor of 5 years and a coupon of 6..1962%.. Meralco Sells PHP5... The coupon rates were set at 6.......and 10-year sukuk (Islamic bonds) in the international market.... Proceeds from the issue will fund capital expenditures and general corporate expenses.................17%........ the Industrial and Commercial Bank of China (ICBC) sold CNY38..... issued CNY1..............646%... The largest tranche was a 2-year bond amounting to JPY58.2692% and 6... Manila Electric Co............ Antara Steel Mills. About 29% of the sukuk was allocated to investors from the Middle East..…............ the 5-year at 4.... China Lianhe Credit Rating gave the MTNs an A rating.62%..adb.... and Sabah Development Bank.... Filinvest Land Offers PHP3 Billion Retail Bonds..... Meanwhile...0 Billion Sukuk........89%..32% coupon..........org/japan/data/macroeconomic_credit... Sabah Development Bank priced MYR300 million worth of 5-year sukuk at 4. The notes were priced at 4....56% last week.....0 billion worth of 5.... For statistics on Japan's industrial production growth rate. 27% to Malaysian-based investors. MTNs...adb...... Meanwhile....... F&N Treasury Raises SGD50 Million from 7-Year Bond Sale ………………………………………………………………………………………………………………………. and the 7-year at 4...by Standard and Poor's....... The bills were priced to yield 5....... the 6-year at 4..php For statistics on Thailand's manufacturing production growth rate.. and A3 by Moody's.. and structured under the sharia'h (Islamic law) principle of wakala (agency agreement)...org/vietnam/data/macroeconomic_credit.....5 billion of 10-year bonds...35%... while the USD800 million 10-year sukuk pays 4..0 billion 5-year bond at a 1... .......................0% and a maturity of 7 years.20% in the first... .........5 billion of 3-year senior bonds last week...........90%..0 billion of 8-year bonds at a coupon of 3.0 trillion.. and 6............. Meanwhile.... The proceeds from the bond issue will be used to support the bank's loan expansion program........3 Trillion of 10-Year Bonds PT Bank Permata issued IDR1....75%. second.........................org DEBT HIGHLIGHTS ………………………………………………………………………………………………………………………... Home mortgage provider PT Bank Tabungan Negara Tbk sold IDR1. Summary Text of News Articles Subordinated Debt. Noble Development and Provincial Waterworks Authority Issues THBDenominated Bonds...3 trillion of 10-year bonds last week. PT Bank Permata Issues IDR1...... Bank Tabungan Negara Issues IDR1..0 Billion of Fixed-Rate Notes..75 Trillion of Subordinated Debt..... and Commercial Paper Issuance in the PRC.. Proceeds from the issue will be used to support the bank's housing loan expansion... and third year............................ Proceeds from the bond issue will finance residential project development and debt repayment. Bank Tabungan Pensiunan Nasional Tbk sold IDR500 billion dual-tranche bonds last week........ The bonds will pay a coupon of 5.. Singapore's F&N Treasury issued 7-year floating rate bonds worth SGD50 million last week........ The deal was an upsize from an original plan of IDR1......75 trillion of subordinated bonds last week......25%..………..........ASIANBONDSONLINE asianbondsonline.......76%...... Meralco Sells PHP5. Filinvest Land Offers PHP3 Billion Retail Bonds..... Proceeds from the issue will be used to fund the bank's lower Tier 2 capital requirements.... The bank issued 3-year bonds worth IDR165 billion with a coupon of 9...... ……………………………………………………………………………………………………………………….... The bonds carried a coupon of 9............. F&N Treasury Raises SGD50 Million from 7-Year Bond Sale (cont…) ................ 5..... MTNs............5%........ respectively............... 6 ... The subdebt issue carried a coupon of 11....…. Bank Tabungan Pensiunan Sells IDR500 Billion of DualTranche Bonds. Thai property developer Noble Development sold THB1..... Stated-owned Provincial Waterworks Authority issued THB1.......25% and 5-year bonds worth IDR335 billion with a coupon of 9.adb. 90 3.00 0.00 -5.00 0.70 43. China India Malaysia Korea.42 0.14 160.25 2.00 0.90 20.00 6.10 3.00 0.00 81.28 -7.44 10.05 -6.87 31.00 0..00 0.05 10-Year Selected LCY Government Bond Yields Markets US EU Japan PRC Hong Kong.00 8.70 -8.50 6.30 0.50 10.80 0.adb.02 0.12 -20.32 3.20 0.00 7.70 2.00 -7.02 1.88 12.06 8.00 00 1.40 78.00 -1.50 0.53 3. Rep.00 1.62 basis point change from Previous Previous 1-Jan-11* Day* Week* 2.80 0.00 -5.00 7.00 4..00 -5.00 Close of 1 July 2011 Source: Based on data from Bloomberg.89 2.00 -2. of Philippines Singapore Thailand Close of 1 July 2011 Latest Closing 0.50 107.40 13.00 -7.00 -1.808.23 31.00 -2. Selected Government Security Yields Tip: Zoom-in on the table using the Acrobat zoom tool 3-Month Selected LCY Government Security Yields basis point change from Previous Previous 1-Jan-11* Day* Week* 1.50 4.20 -7.00 -5.00 -58.90 1.51 1.10 10.94 4.14 3.83 Markets US EU Japan PRC Hong Kong.00 3.00 -8.00 15.03 1. ………………………………………………………………………………………………………………………………… 7 .36 7.00 -5.00 3.12 20.05 35..32 2.ASIANBONDSONLINE asianbondsonline.34 3.00 -19.10 0.00 -10.27 8.00 -22.00 7.91 3.10 2.70 1.36 0.00 -2. LP..00 3.00 -14.00 7.18 3.10 -10.33 6.00 0.00 4.10 3.00 24.18 0.00 100.14 -20.00 -37.02 -10.00 6.40 -5.90 1.80 10..org DEBT HIGHLIGHTS …………………………………………………………………………………………………………………………….00 7.87 -11..00 7.00 -14.90 6. Rep.40 -0. China India Indonesia Malaysia Korea.00 0.40 0. of Philippines Singapore Thailand Viet Nam Latest Closing 3.00 87.50 0. 5 1.5 4.50 3.5 2.00 2.0 0.5 Yield (%) 4.0 6.0 1. People’s Rep.8 3.8 1.3 3.5 4.3 2.25 3.3 0.0 7.3 12.0 1.6 3.50 2.0 EU 2...0 Yield (%) 3.0 8 10 12 14 16 18 20 22 0 3 6 Philippines Yield (%) 4.5 0.0 7.50 3.0 2.8 3.0 4.2 3.00 5.5 3.5 1.00 2.3 2.50 5.8 0.0 1.0 11.3 13.0 2. of 4.0 8. Benchmark Yield Curves – Local Currency Government Bonds Tip: Zoom-in on the table using the Acrobat zoom tool China.3 4.8 4.5 1.5 Hong Kong.00 3.0 Yield (%) Yield (%) 2..org DEBT HIGHLIGHTS Indonesia …………………………………………………………………………………………………………………………….5 1.8 2.0 10.5 4.4 3.0 0.0 1.0 0 4 8 12 16 20 24 28 32 Yield (%) 0 5 10 15 20 25 30 3.0 3.0 6 8 10 12 14 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Time to maturity (years) 01-Jul-11 24-Jun-11 17-Jun-11 01-Jul-11 Time to maturity (years) 24-Jun-11 17-Jun-11 01-Jul-11 Time to maturity (years) 24-Jun-11 17-Jun-11 US 5.8 2.0 9.75 2.6 0 2 4 6 Malaysia 10.25 4.6 4.00 3.8 12.3 2.00 4.0 4.0 0.adb.8 3.0 0.8 2.3 0.5 2.50 9 12 15 18 21 24 27 Time to maturity (years) 01-Jul-11 24-Jun-11 17-Jun-11 Time to maturity (years) 01-Jul-11 24-Jun-11 17-Jun-11 01-Jul-11 Time to maturity (years) 24-Jun-11 17-Jun-11 Singapore 3.5 2.0 0 4 8 12 16 20 24 28 32 36 40 Time to maturity (years) 01-Jul-11 24-Jun-11 17-Jun-11 Tim to m e aturity (years) 01-Jul-11 24-Jun-11 17-Jun-11 Time to maturity (years) 01-Jul-11 24-Jun-11 17-Jun-11 Source: Based on data from Bloomberg...5 0.5 0.2 4.75 3. ………………………………………………………………………………………………………………………………… 8 . Republic of 6. China 12.0 Viet Nam Yield (%) Yield (%) Yield (%) 12.5 0.0 5.8 0.3 1.0 3.ASIANBONDSONLINE asianbondsonline.0 5.25 0 1 2 3 4 5 6 7 8 9 10 11 12 9.0 0 2 4 Thailand 13.8 Japan Yield (%) 2.0 3.0 8.0 3.0 4.5 3.5 3.0 0..3 1.0 Yield (%) 6.4 4.0 1.0 2.5 2.0 0 2 4 6 8 10 12 14 16 0 3 6 9 12 15 18 21 24 27 30 33 Time to maturity (years) 01-Jul-11 24-Jun-11 17-Jun-11 01-Jul-11 Time to maturity (years) 24-Jun-11 17-Jun-11 01-Jul-11 Time to maturity (years) 24-Jun-11 17-Jun-11 Korea.5 12.0 2.0 2.50 0 2 4 6 8 10 12 14 16 18 20 22 Yield (%) 4.0 3.0 1.3 0 3 6 9 12 15 18 21 4. U.ASIANBONDSONLINE asianbondsonline.and Ten-Year Government Bonds China. ………………………………………………………………………………………………………………………………… 9 . of Malaysia Philippines Singapore Thailand Viet Nam U. China Indonesia Korea. of 1-Jul-11 Hong Kong... Japan 0 50 100 150 200 basis points 24-Jun-11 17-Jun-11 250 300 Source: Based on data from Bloomberg LP... 2-versus-10 Yield Spread Chart Tip: Zoom-in on the table using the Acrobat zoom tool Yield Spread between the Two.adb. Rep.. E.S.. People's Rep.org DEBT HIGHLIGHTS ……………………………………………………………………………………………………………………………. Source: Bloomberg LP.00 Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 Bangko Sentral uses the Philippine overnight reverse repurchase agreement rate as one of its policy instruments. Republic of 10 8 6 Inflation Rate 4 4..ASIANBONDSONLINE asianbondsonline.00 Inflation Rate Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 Bank Indonesia uses its reference interest rate (BI rate) as its policy rate. Source: Bloomberg LP.82 9. Policy Rate versus Inflation Rate Charts Tip: Zoom-in on the table using the Acrobat zoom tool China. People’s Rep.06 7.31 8 Hong Kong. The Hong Kong Monetary Authority maintains a Discount Window Base Rate.adb. 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. Philippines 14 12 10 8 6 4. China 12 10 HKMA Base Rate Inflation Rate 5.75 5.50 0. The State Bank of Viet Nam uses a benchmark prime lending rate as its policy rate. Source: Bloomberg LP.5 Inflation Rate Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 -4 Jan05 Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 Sep05 Jun06 Feb07 Nov07 Aug08 Apr09 Jan10 Sep10 Jun11 PRC uses 1-year lending rate as one of its policy rates. of 10 8 6 5.30 3.50 0 -2 Overnight Reverse Repo Rate Inflation Rate 10 8 6 4 2 Thailand 30 27 24 Inflation Rate 4. Source: Bloomberg LP. Bank Negara Malaysia uses the overnight policy rate (OPR) as its policy rate. Indonesia 20 18 16 6 14 12 10 8 6 4 2 0 Jan05 0 Jan05 Inflation Rate 6.06 3.00 21 18 1-Day Repo Rate 15 12 9 6 -4 -6 Jan05 3 0 Jan05 Prime Lending Rate Viet Nam Inflation Rate 20... The Bank of Thailand replaced the 14-day repurchase rate with the 1-day repurchase rate in January 2007 as its policy rate.. The Reserve Bank of India uses the repurchase (repo) cutoff yield as its policy rate.50 4 2 0 Jan05 4.25 2 0 -2 -4 Jan05 Malaysia Overnight Policy Rate 3.40 3.. Source: Bloomberg LP.54 2 4 7-Day Repo Rate 8 Korea. Source: Bloomberg LP.. Source: Bloomberg LP.50 4 2 2 0 0 -2 -4 Jan05 Inflation Rate -2 4 1-year Lending Rate 6.org DEBT HIGHLIGHTS India …………………………………………………………………………………………………………………………….2 8 6 4 2 0 -2 Jan05 Repurchase Cut-off Yield 6 9. Source: Bloomberg LP. ………………………………………………………………………………………………………………………………… 10 . 2 January 2007=100) 130 13 0 C h in a.. o f M al aysia 110 11 0 Ph il ip p in es 100 10 0 Th a ilan d Sin g a po r e 90 90 Vie t N am 80 80 70 70 60 60 Source: ADB-OREI staff calculations based on Bloomberg data. of In d o n esia 120 12 0 K o rea . C h in a 1. 50 Jan -07 Au g -07 A p r-08 N o v -0 8 Ju l-09 M ar -10 O ct-10 50 Ju n -11 ………………………………………………………………………………………………………………………………… 11 . Credit Default Swap Spreads & Exchange Rate Indexes Tip: Zoom-in on the table using the Acrobat zoom tool Credit Default Swap Spreads .org DEBT HIGHLIGHTS ……………………………………………………………………………………………………………………………. R ep .. P eo p le 's R ep .Senior 5-year* 1.0 00 Mid spread in basis points Jap an M al aysia 8 00 Ph ili p p in es 6 00 Th ai lan d 4 00 2 00 * In USD currency and based on sovereign bonds Source: Thomson Reuters 0 De c -0 7 Ma y-08 O c t-08 Ap r-09 Se p-0 9 Fe b-10 J ul-1 0 J an-1 1 J un -1 1 Exchange Rate Indexes (vis-à-vis US$.adb. o f H o n g K o n g .ASIANBONDSONLINE asianbondsonline. P eo p le 's R ep ..2 00 In d o ne sia K o rea... o f 1. R ep .4 00 C h in a.. 23 15.50 0.19 0.50 4.90 2.00 1.37 2.50 1.00 20.00 1.00 0....20 10.200.11 0.040.20 20.000.00 1.23 2.200.00 1.09 3.40 9.00 28.90 2.00 MY 27-Jun 29-Jun PH SG TH 27-Jun 27-Jun 28-Jun 28-Jun Sources: Local market sources and Bloomberg.00 4.03 3.00 1. LP.00 1..00 1.adb.762.00 1..92 4.00 1.50 0.50 2.40 3.84 3.39 2.88 3.00 18.. Selected Debt Security Issuances (27 June – 1 July 2011) Tip: Zoom-in on the table using the Acrobat zoom tool Markets Auction Date PRC HK JP KR 28-Jun 28-Jun 29-Jun 27-Jun Type of Security 1-year PBOC Bills 91-day Exchange Fund Bills 181-day Exchange Fund Bills 3-month Treasury Discount Bills 91-day Monetary Stabilization Bonds 1-year Monetary Stabilization Bonds 20-year Treasury Bonds 91-day BNM Islamic Notes 168-day BNM Notes 210-day BNM Notes 56-day BNM Islamic Notes 89-day BNM Notes 259-day BNM Notes 20-year Malaysian Government Securities 91-day Treasury Bills 364-day Treasury Bills 91-day Treasury Bills 2-year Government Bonds 28-day BOT Bills 91-day BOT Bills 182-day BOT Bills Average Yield (%) 3.88 …………………………………………………………………………………………………………………………….09 0.68 2.00 1.20 2.98 1.22 0.40 9.33 Coupon (in %) Amount Offered LCY Billions 2.00 800.50 0.20 0.68 4.00 2.00 4.00 800.org DEBT HIGHLIGHTS Amount Issued LCY Billions 2.84 2.ASIANBONDSONLINE asianbondsonline.39 12.89 2.06 3. ………………………………………………………………………………………………………………………………… 12 .00 28.00 3.00 2.88 2.00 0.89 2.800. .8% in March. 07/11 Growth in the Philippines’ M3 money supply eased to 7.1% 15.1% y-o-y in May from 15.2% y-o-y in April following a 2.9% 19.0% 4.3% 2.5% y-o-y in April.5 50.3% growth in March.5% 52.ASIANBONDSONLINE asianbondsonline.3% Recent Trends Malaysia’s export growth rose to 11. 07/05 Singapore’s purchasing managers index fell to 50.5% 43.6% 4.8% increase in April.4% y-o-y in May from 29.8% 11. up from USD11. 07/10 The growth of the PRC’s M2 money supply fell slightly to 15.2% 48. Bloomberg LP. Selected Asia Data Releases (5 .3% in April.00% 3.1% 4.1% y-o-y in April after growing 16.1% 11.75% during its last Monetary Policy Committee meeting on 5 May.9% expansion in March.3% 7.5% y-o-y in May from 4.4 billion in April. slightly higher than the 14.4% 2.2% y-o-y in May following a 6.4 13.3 52..1% year-on-year (y-o-y) in April from 7.1% 2.00% 2.7% 10.1 21.5% 12. 07/11 Malaysia’s industrial production contracted 2.8 10.2 51. 07/05 Consumer price inflation in the Philippines accelerated to 4.3% 7.8% 6.3% 15..5% 15.1% 2. 07/08 Growth in Japan’s M3 money supply remained steady at 2. ………………………………………………………………………………………………………………………………… 13 .9% 29.9% –2.1% y-o-y in both April and May.3% y-o-y in April from 10.adb.1% growth posted in March.5 20.0 11. 07/10 Export growth in the People’s Republic of China (PRC) fell to 19. 07/11 Manufacturing sales in Malaysia rose 15.org DEBT HIGHLIGHTS …………………………………………………………………………………………………………………………….50% 3..5 in April. 07/08 Producer prices in the Republic of Korea rose 6.6% 11.00% from 2.1% 4.6% 6.4 % 19. Source: AsianBondsOnline.11 July 2011) Tip: Zoom-in on the table using the Acrobat zoom tool Country/Variable Malaysia Exports y-o-y% MAY Philippines Consumer Price Index y-o-y% JUN Singapore Purchasing Managers Index Index JUN Indonesia M2 Money Supply y-o-y% MAY Malaysia Overnight Policy Rate % JUL Japan M3 Money Supply y-o-y% JUN Republic of Korea Producer Price Index y-o-y % JUN People’s Republic of China Exports y-o-y% JUN People’s Republic of China Trade Balance USD billion JUN People’s Republic of China M2 Money Supply y-o-y% JUN Malaysia Industrial Production y-o-y% MAY Malaysia Manufacturing Sales y-o-y% MAY Philippines M3 Money Supply y-o-y% MAY Release Date 07/05 Historical Data 04/10: 05/10: 03/11: 04/11: 05/10: 06/10: 04/11: 05/11: 05/10: 06/10: 04/11: 05/11: 04/10: 05/10: 03/11: 04/11: 06/10: 07/10: 05/11: 06/11: 05/10: 06/10: 04/11: 05/11: 05/10: 06/10: 04/11: 05/11: 05/10: 06/10: 04/11: 05/11: 05/10: 06/10: 04/11: 05/11: 05/10: 06/10: 04/11: 05/11: 04/10: 05/10: 03/11: 04/11: 04/10: 05/10: 03/11: 04/11: 04/10: 05/10: 03/11: 04/11: 26.8 points in May from 52.1% 15.3% in April due to monetary tightening measures implemented by the People’s Bank of China. 07/07 to 07/13 Indonesia’s M2 money supply expanded 15.3% 14.4% 12.5% 10.1% 20.0% 18. 07/07 Bank Negara Malaysia raised its overnight policy rate to 3.2% 16.3% 21.2% 20. 07/10 The PRC posted a trade surplus of USD13.1% in March.2% 2..3% 4.3% 4.1 billion in May.. and Reuters.50% 2.9% in April. .5 Billion Budget Deficit in January–May. Remains Unchanged in Japan • • • • Indonesia's June CPI Slows to 5. Bank Tabungan Negara Issues IDR1. News Articles: Sources for Further Reading Tip: Click on link to open a new browser (Acrobat Reader 8)..6 pct yr/yr Reuters (01 July 2011) Industrial Output Growth Increases in Japan. and Viet Nam.9%–2.Economic Statistics for First Half of 2011 General Statistics Office (01 July 2011) • Indonesia's Finance Ministry Forecasts a 2011 Budget Deficit Equal to 1. or linked to. Ku-area of Tokyo June 2011 (preliminary) Ministry of Internal Affairs and Communications . F&N Treasury Raises SGD50 Million from 7-Year Bond Sale • • • • • • • ICBC Completes RMB38 Billion Sub-Debt Issuance Indonesia Today (01 July 2011) Guangdong Guangxin Issues Notes Today China Knowledge (29 June 2011) Jiangsu Beijing-Shanghai Expressway Issues Bills Today China Knowledge (29 June 2011) Manila Electric Company to Issue PHP5.Japan (29 June 2011) The Industrial Activities in May 2011 Statistics Korea (30 June 2011) Monthly Integrated Survey of Selected Industries . This disclaimer does not derogate from. Meralco Sells PHP5.F&N Treasury Pte Ltd issues S$50 mln 7yr Bond Reuters (27 June 2011) Trade Deficits in Hong Kong. Korea Eximbank Prices JPY80 Billion Samurai • • • • • Press Release – Wakala Global Sukuk Ministry of Finance Malaysia (29 June 2011) Telekom Makes Call IFR Asia (25 June 2011) Steel-tight Cover IFR Asia (25 June 2011) Sabah Devt Bank Taps Five-Year Funds at 4. Philippines Records PHP9.06% Bangkok Post (01 July 2011) Japan May 2011. BTPN Bank Continuous Bond I With Fixed Interest Rate Phase I Year 2011. and Viet Nam. The ADB provides no warranty or undertaking of any kind in respect to the information and materials found on. Slows in the Philippines and Falls in Thailand • • • • • Indices of Industrial Production Ministry of Economy.0 Billion Sukuk. Republic of Korea. and Sabah Development Bank. Viet Nam's Budget Deficit Reaches VND27. the general terms and conditions regarding the use of the AsianBondsOnline Web Site. and Thailand • • • • • • External Merchandise Trade Statistics for May 2011 Census and Statistics Department (28 June 2011) Indonesia Books US$3.3 Trillion of 10-Year Bonds • Listing of Permata Bank Subordinated Bond II Year 2011. 2011 Indonesia Stock Exchange (30 June 2011) • ………………………………………………………………………………………………………………………………… 14 Disclaimer: AsianBondsOnline Newsletter is available to users free of charge.54 pct y/y. .. Bank Tabungan Pensiunan Sells IDR500 Billion of Dual-Tranche Bonds.Economic Statistics for First Half of 2011 General Statistics Office (01 July 2011) Republic of Korea Posts Current Account Surplus for 15th Straight Month in May.78Tr Dong at HI: MOF Reports Intellasia (01July 2011) Malaysia Issues USD2.8 Trillion in 1H11 • • • Deficit Won’t Pass 2. and Commercial Paper Issuance in the PRC. Above Forecast Reuters (01 July 2011) Consumer Price Index in June 2011 Statistics Korea (01 July 2011) June Inflation Up 4. MTNs.43% IFR Asia (29 June 2011) Kexim Sets New Benchmark with Record Korean Samurai IFR Asia (28 June 2011) PRC’s Local Government Debt Reached CNY10. and BTN Bank Bond XV Year 2011 on June 30. Views expressed in articles marked with AsianBondsOnline are those of the authors. or for any consequences arising from its use and does not invite or accept reliance being placed on any materials or information so provided. Rises in the Republic of Korea. Antara Steel Mills.0 Billion Fixed Rate Notes The Philippine Stock Exchange (29 June 2011) Filinvest Launches Ps3bn 5year at 6. which also apply. Korea’s Trade Surplus Reaches US$3. and not ADB. Noble Development and Provincial Waterworks Authority Issues THB-Denominated Bonds.org DEBT HIGHLIGHTS …………………………………………………………………………………………………………………………….6% in 1H11 • • Balance of Payments during May 2011 The Bank of Korea (28June 2011) South Korea’s Current-Account Surplus Widens as Car Makers Boost Shipments Bloomberg (28June 2011) Socio. Philippines. for lower versions right-click to open a new browser) Consumer Price Inflation Eases in Indonesia and Thailand.5bn Three-Year Note IFR Asia (27 June 2011) New Issue .Japan (01 July 2011) TABLE-Japan May Core CPI Rises 0. AsianBondsOnline Newsletter.1% Despite Fuel Subsidy The Jakarta Post (28 June 2011) January to May Fiscal Deficit at P9. and is in addition to.. The ADB accepts no responsibility for the accuracy of the material posted or linked to the publication. Trade Surpluses in Indonesia.Economic Statistics for First Half of 2011 General Statistics Office (01July 2011) PT Bank Permata Issues IDR1. China. or the information contained therein.0 Billion of Fixed-Rate Notes.April 2011 National Statistics Office (28 June 2011) Manufacturing Down in May Bangkok Post (28 June 2011) Socio. Local Currency Sukuk Issuance from Telekom Malaysia.1% of GDP.adb..540 Billion Bureau of the Treasury (29 June 2011) Viet Nam’s Budget Deficit at 27.19% IFR Asia (27 June 2011) Noble Development Hits Market With Bt1. Viet Nam’s Economy Expands 5.7 Tln As Of End 2010 The Wall Street Journal (27June 2011) Subordinated Debt.3 Bln in June YONHAP News (01 June 2011) EXTERNAL TRADE PERFORMANCE –April 2011Preliminary National Statistics Office (28 June 2011) Press Release on Economic and Monetary Conditions for May 2011 Bank of Thailand (30 June 2011) Socio. Republic of Korea.51 Billion Export Surplus in May Bisnis Indonesia (01 July 2011) S. Filinvest Land Offers PHP3 Billion Retail Bonds.75 Trillion of Subordinated Debt.ASIANBONDSONLINE asianbondsonline.. Trade and Industry .7 Trillion at end-2010 • • China's Local Government Debts Exceed 10t Yuan China Daily (27 June 2011) UPDATE: China Local Government Debt CNY10.