Key Developments in Asian Local Currency Markets

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Key Developments in Asian Local Currency Markets

25 January 2010 asianbondsonline.adb.orgKey Developments in Asian Local Currency MarketsThe People's Republic of China (PRC) registered GDP growth of 10.7% year-on-year (y-o-y) in 4Q09 after posting9.1% growth in the previous quarter. The 4Q09 growth figure is the country's highest since 2007. For the full year in2009, the PRC's GDP growth rate was 8.7%, exceeding the government's annual growth target of 8.0%. On a y-o-ybasis, industrial production increased 18.5% in December, while total urban fixed-asset investment rose 30.5% in2009. Retail sales in December grew 17.5% y-o-y, which is the most since January 2009.In the PRC, consumer price inflation stood at1.9% y-o-y in December compared to 0.6% inNovember. Hong Kong, China's consumer priceinflation rate was 1.3% y-o-y in December, upfrom 0.5% in the previous month. Consumer priceinflation in Malaysia was 1.1% y-o-y in Decemberafter having been in negative territory since June.The government of Viet Nam conducted roadshows last week in Hong Kong, China; the UnitedKingdom; and the United States for its plannedoffering of USD1 billion of 10-year global bonds.The bonds are expected to yield a maximum of7.0%, which is higher than the 5.67% yield onPhilippine sovereign bonds and 6.06% yield onIndonesian sovereign bonds that were issuedearlier this year. Meanwhile, the Viet Nam Bankfor Social Policies plans to issue VND3 trillion(USD162.4 million) of 2-year bonds.In the Philippines, Power Sector Assets andLiabilities Management (PSALM) plans to issuePHP20 billion (USD432.1 million) in the domesticbond market in 1Q10 to finance its working capitaland support its liability management program.Part of the bond proceeds will also be used to payoff maturing obligations of the National PowerCorporation.Singapore's non-oil domestic exports surged26.1% y-o-y in December, after rising 8.7% inNovember, due to growth in the export ofelectronics, pharmaceuticals, petrochemicals, andprimary chemicals. Thailand's December exportsexpanded 26.1% y-o-y on the back of increasedforeign demand for domestic agro-industryproducts such as rice, rubber, electronics, andauto parts. The Philippines recorded a balance ofpayments (BOP) surplus of USD5.3 billion in2009, which is significantly larger than the BOPsurplus of USD89 million in 2008, due to growth inremittances.In the Republic of Korea (Korea), Decembersales at major department stores and discountchains rose 12.5% and 3.9%, respectively, from ayear ago. In other news, the Bank of Korea (BOK)and Bank of Japan (BOJ) have decided to onceagain extend the agreement increasing the size oftheir bilateral KRW–JPY swap arrangement—Asia Bond Monitor November 2009from USD3 billion to USD20 billion—until 30 April 2010.read more10-Year Selected LCY Government Security Yields Close of 22 January 2010basis point change fromMarkets Latest Closing Previous Day* Previous Week* 1-Jan-10*US 3.61 2.13 -6.73 -6.73 -22.79EU 3.22 0.80 -4.70 -4.70 -17.20Japan 1.33 -1.90 0.00 0.00 3.50PRC 3.66 1.00 -2.00 -2.00 2.00Hong Kong, China 2.79 -7.00 -1.70 -1.70 20.80India 7.56 -2.50 -7.80 -7.80 -1.70Indonesia 9.76 15.90 20.50 20.50 -30.20Malaysia 4.27 -0.10 -0.90 -0.90 -2.00Korea, Rep. of 5.33 -1.00 -3.00 -3.00 -6.00Philippines 7.83 -17.50 -12.50 -12.50 -17.50Singapore 2.53 -2.00 0.00 0.00 -13.00Thailand 3.94 0.50 1.70 1.70 -24.50Viet Nam 12.66 4.50 -1.10 -1.10 120.60Selected Government Security YieldsBenchmark Yield Curves - Local Currency Government Bonds2-versus-10 Yield Spread ChartPolicy Rate versus Inflation Rate ChartsCredit Default Swap Spreads & Exchange Rate IndexesSelected Debt Security IssuancesSelected Asia Data ReleasesGovernment bond yields in the PRC; Hong Kong, China; Korea,Malaysia, and Singapore were little changed compared to their levels inthe previous week. Indonesian bond yields rose substantially – by asmuch as 29.2 basis points at the very short end – for most maturities. ThePhilippine yield curve, meanwhile, widened out from the short end to thebelly of the curve, but tightened at the longer end of the curve. Thaigovernment bond yields rose or remained unchanged for most maturities.Yields on Viet Nam government bonds exhibited an opposite pattern, withthe curve tightening overall, except for the 7-year tenor, which rose 8.3basis points.Finally, the more interesting economic data release points this weekinclude consumer price inflation for Indonesia, Japan, Korea, andThailand; GDP for Korea and the Philippines; policy interest rates forJapan, Malaysia, and the Philippines; and exports for Indonesia andThailand.……………………………………………………………………………………………………………..……………..……1


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS………………………………………………………………………..…………………………………………………..........Summary Text of News ArticlesThe People's Republic of China's (PRC) Economy Accelerates in December........................................................................................................................................According to data released by the People's Republic of China's (PRC) statistics bureau on 21 January, the country's economygrew 10.7% year-on-year (y-o-y) in 4Q09, following growth of 9.1% in the previous quarter. The growth figure in 4Q09 is thecountry's highest since 2007. For the full year in 2009, the PRC's gross domestic product (GDP) growth rate was 8.7%,exceeding the government's annual growth target of 8.0%. On a y-o-y basis, industrial production increased 18.5% inDecember, while total urban fixed-asset investment rose 30.5% in 2009. Retail sales in December grew 17.5% y-o-y, which isthe most since January 2009.Meanwhile, Liu Mingkang, head of the PRC's banking regulator, said on 20 January that lending limits have been put in placefor some banks and credit expansion will be restrained in 2010. Liu said that banks would make CNY7.5 trillion in new loans in2010, which would be about 22% less than the CNY9.59 trillion of loans extended in 2009. Liu's statements come as thePeople's Bank of China raised banks' reserve requirements earlier this month and after bill yields have risen in the last twoauctions.For historical data on the PRC's GDP growth, refer to this link:http://www.asianbondsonline.adb.org/china/data/macroeconomic_credit.phpConsumer Price Inflation Picks Up in the PRC; Hong Kong, China; and Malaysia........................................................................................................................................The PRC's National Statistics Bureau reported that consumer price inflation for December 2009 was at 1.9% y-o-y. TheDecember figure is part of an accelerating trend that has seen the consumer price inflation rate progressively climb from a lowof -1.8% in July. For the full year in 2009, however, the country posted consumer price inflation of -0.7%, due largely todeclines in prices for housing (-3.6%); transportation and communication (-2.4%); clothing (-2.0%); and recreation, education,cultural articles, and services (-0.7%).Hong Kong, China registered consumer price inflation of 1.3% y-o-y in December compared to 0.5% in November. The uptickin inflation was due mainly to higher food and fuel costs. For the full year in 2009, the consumer price inflation rate was 0.5%y-o-y compared to an inflation rate of 4.3% recorded in 2008.Malaysia's consumer price inflation rate in December rose to 1.1% y-o-y after having stayed in negative territory from Junethrough November. The 2009 inflation rate was also reported at 0.6%, which was below the government's 2009 annual targetrange of 1.0%-2.0%. For 2010, the government is once again expecting inflation to remain between 1.0% and 2.0%.For historical data on the PRC's consumer price inflation, refer to this link:http://www.asianbondsonline.adb.org/china/data/marketwatch.php?code=policy_rate_and_inflation_trendsFor historical data on Hong Kong's consumer price inflation, refer to this link:http://asianbondsonline.adb.org/hongkong/data/marketwatch.php?code=policy_rate_and_inflation_trendsFor historical data on Malaysia's consumer price inflation, refer to this link:http://asianbondsonline.adb.org/malaysia/data/marketwatch.php?code=policy_rate_and_inflation_trendsViet Nam Plans to Issue USD1 Billion of Global Bonds........................................................................................................................................The government of Viet Nam conducted road shows in Hong Kong, China; the United Kingdom; and the United States inconnection with its planned offering of USD1 billion of 10-year global bonds. The bonds are expected to yield a maximum of7.0%, which is higher than the 5.67% yield on Philippine sovereign bonds and 6.06% on Indonesian sovereign bonds thatwere issued earlier this year. Proceeds of the bond offering will finance various energy and transportation projects. Moody'shas assigned the forthcoming global bond issue a foreign currency rating of Ba3 with a negative outlook. The planned bondissue would be Viet Nam's second sale of international bonds, after its successful issuance of USD750 million in October2005. Meanwhile, the Viet Nam Bank for Social Policies plans to issue VND3 trillion of 2-year bonds. The state-run policylender failed to sell any of its 2-year bonds in August 2009 as investors required higher yields.………………………………………………………………………………………..…………………………………..……2


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS………………………………………………………………………………………………………………………..……......Summary Text of News ArticlesPSALM Plans to Issue PHP20 Billion in 1Q10........................................................................................................................................In the Philippines, Power Sector Assets and Liabilities Management (PSALM) plans to issue PHP20 billion in the domesticbond market in 1Q10 to finance its working capital and support its liability management program. The proceeds of this bondoffering will also be used to pay off the debts and prepay the current obligations of the National Power Corporation. Lowinterest rates and high liquidity have encouraged PSALM to push for this planned bond sale. In 2009, PSALM issued twoglobal bonds. The first was made in May and amounted to USD1 billion and the second bond sale worth USD1.2 billion wasissued in November.Singapore and Thailand See a Surge in Exports in December;Philippines Posts a Balance of Payments Surplus in 2009........................................................................................................................................Singapore's non-oil domestic exports (NODX) grew 26.1% year-on-year (y-o-y) in December after posting 8.7% growth inNovember. On a month-on-month (m-o-m) and seasonally adjusted basis, NODX increased 1.7% in December after theprevious month's increase of 20.0%. Electronic exports increased 25.0% y-o-y in December, while exports of non-electronicproducts grew 27.0% on the back of increases in the export of pharmaceuticals, petrochemicals, and primary chemicals.Thailand's December exports reached USD14.62 billion for an increase of 26.1% y-o-y as demand rose for agro-industryproducts such as rice, rubber, electronics, and auto parts. According to Thailand's Ministry of Commerce, the December figurewas well above an earlier government target of USD13 billion. Exports for all of 2009 totaled USD152.5 billion, which is adecrease of 14.0% from 2008 levels but is still an improvement over an earlier forecasted decline of 15.0%.In the Philippines, the balance of payments (BOP) surplus for 2009 reached USD5.3 billion, which is substantially larger thanthe 2008 BOP surplus of USD89 million yet well below the 2007 BOP surplus of USD8.6 billion.For historical data on Thailand's exports, refer to this link:http://www.asianbondsonline.adb.org/thailand/data/macroeconomic_credit.phpFor historical data on the Philippines' balance of payments, refer to this link:http://asianbondsonline.adb.org/philippines/data/macroeconomic_credit.phpDecember Sales at Major Department and Discount Stores Climb in the Republic of Korea;Bank of Korea and Bank of Japan Agree to Extend Measure to Increase Size of the KRW-JPY Swap Arrangement........................................................................................................................................The Ministry of Knowledge Economy in the Republic of Korea (Korea) reported that sales at Korea's three major departmentstores rose by 12.5% y-o-y in December, the highest rate of increase since August 2008. Department store sales increasedfor all product categories, which include children's goods, sporting goods, food, general goods, household goods, luxurygoods, men's clothing, women's casual wear, and women's suits. For the whole of 2009, sales growth at the three majordepartment stores was 6.5% y-o-y. Also, sales at the three major discount stores rose 3.9% y-o-y in December, led byapparel, general goods, household appliances, cultural goods, household goods, and sporting goods. Meanwhile, sales offood at the discount stores dropped by 1.4% y-o-y in December.The Bank of Korea (BOK) and Bank of Japan (BOJ) have decided to once again extend the agreement increasing the size oftheir bilateral KRW-JPY swap arrangement-from USD3 billion to USD20 billion-until 30 April 2010. This agreement originallywas only for the period 12 December 2008 to 30 April 2009.For historical data on Korea's department store sales, refer to this link:http://asianbondsonline.adb.org/korea/data/macroeconomic_credit.php…………………………………………………………………………………………………………………………..………3


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS…………………………………………………………………………………………………………………………….......Selected Government Security YieldsTip: Zoom-in on the table using the Acrobat zoom tool3-Month Selected LCY Government Security YieldsMarketsbasis point change fromLatestPrevious PreviousClosing1-Jan-10*Day*Week*US 0.04 0.51 -0.81 -0.81 -1.22EU 0.28 0.10-0.40-0.40 -8.30Japan 0.12 -0.30-0 .50-0.50 -1.00PRC 1.35 0.00 0.00 0.00 10.00Hong Kong, China 0.08 1.003.003.00 1.00India 3.80 0.002.002.00 50.00Malaysia 1.97 0.000.800.80 -4.00Korea, Rep. of 2.25 0.001.001.00 -9.00Philippines 4.00 5.489.609.60 -6.74Singapore 0.49 0.00-4.00-4.00 -6.00Thailand 1.23 0.628.339.50Close of 22 January 201010-Year Selected LCY Government Bond YieldsLatestbasis point change fromMarketsPrevious PreviousDay*Week*1-Jan-10*US 3.61 2.13 -6.73 -6.73 -22.79EU 3.22 0.80 -4.70 -4.70 -17.20Japan 1.33 -1.90 0.00 0.00 3.50PRC 3.66 1.00 -2.00 -2.00 2.00Hong Kong, China 2.79 -7.00 -1.70 -1.70 20.80India 7.56 -2.50 -7.80 -7.80 -1.70Indonesia 9.76 15.90 20.50 -30.20Malaysia 4.27 -0.10 -0.90 -0.90 -2.00Korea, Rep. of 5.33 -1.00 -3.00 -3.00 -6.00Philippines 7.83 -17.50 -12.50 -12.50 -17.50Singapore 2.53 -2.00 0.00 0.00 -13.00Thailand 3.94 0.501.701.70 -24.50Viet Nam 12.66 4.50-1.10-1.10 120.60Close of 22 January 2010Source: Based on data from Bloomberg, LP.…………………………………………………………………………………………………………………………………4


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS…………………………………………………………………………………………………………………………….......Benchmark Yield Curves – Local Currency Government BondsTip: Zoom-in on the table using the Acrobat zoom toolYield (%)4.003.503.002.502.001.50China, People’s Rep. ofYield (%)3.02.52.01.51.00.5Hong Kong, ChinaYield (%)12.011.010.09.08.07.06.0Indonesia1.000 1 2 3 4 5 6 7 8 9 10 11 12Time to maturity (years)22-Jan-10 15-Jan-10 08-Jan-100.05.00 1 2 3 4 5 6 7 8 9 10 11 120 2 4 6 8 10 12 14 16 18 20 22Time to maturity (years)Time to maturity (years)22-Jan-10 15-Jan-10 08-Jan-10 22-Jan-10 15-Jan-10 08-Jan-10Yield (%)Korea, Republic ofMalaysiaPhilippines6.005.505.004.504.003.503.002.502.001.500 2 4 6 8 10 12 14 16 18 20 22Time to maturity (years)Yield (%)4.84.33.83.32.82.31.80 2 4 6 8 10 12 14 16 18 20 22Time to maturity (years)Yield (%)11.510.59.58.57.56.55.54.53.50 3 6 9 12 15 18 21 24 27Time to maturity (years)22-Jan-10 15-Jan-10 08-Jan-10 22-Jan-10 15-Jan-10 08-Jan-10 22-Jan-10 15-Jan-10 08-Jan-10Yield (%)Singapore3.83.32.82.31.81.30.80.31 4 7 10 13 16 19 22Time to maturity (years)22-Jan-10 15-Jan-10 08-Jan-10Yield (%)5.04.54.03.53.02.52.01.5Thailand1.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17Time to maturity (years)Viet Nam13.012.812.512.312.011.811.511.311.010.810.510.310.09.89.59.39.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17Yield (%)Time to maturity (years)22-Jan-10 15-Jan-10 08-Jan-10 22-Jan-10 15-Jan-10 08-Jan-10USEUJapanYield (%)4.84.33.83.32.82.31.81.30.80 4 8 12 16 20 24 28 32Time to maturity (years)Yield (%)4.54.03.53.02.52.01.51.00.50.00 5 10 15 20 25 30Time to maturity (years)2.42.11.91.61.41.10.90.60.40.10 4 8 12 16 20 24 28 32Time to maturity (years)22-Jan-10 15-Jan-10 08-Jan-10 22-Jan-10 15-Jan-10 08-Jan-1022-Jan-10 15-Jan-10 08-Jan-10Yield (%)Source: Based on data from Bloomberg.…………………………………………………………………………………………………………………………………5


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS…………………………………………………………………………………………………………………………….......2-versus-10 Yield Spread ChartTip: Zoom-in on the table using the Acrobat zoom toolYield Spread between the Two- and Ten-Year Government BondsChina, People's Rep. ofHong Kong, ChinaIndonesia22-Jan-1015-Jan-108-Jan-10Korea, Rep. ofMalaysiaPhilippinesSingaporeThailandViet NamU.S.E.U.JapanSource: Based on data from Bloomberg.0 50 100 150 200 250 300 350basis points…………………………………………………………………………………………………………………………………6


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS…………………………………………………………………………………………………………………………….......Policy Rate versus Inflation Rate ChartsTip: Zoom-in on the table using the Acrobat zoom toolChina, People’s Rep. of Hong Kong, China India1081486420-21-yearLending RateInflation Rate5.310.66420-2HKMA BaseRateInflation Rate 0.50.5121086420RepurchaseCut-off YieldInflation Rate4.751.51-4Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-10-4Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-10-2Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-10PRC uses 1-year lending rate as one of its policy rates.Source: Bloomberg, LP.The Hong Kong Monetary Authority maintains a DiscountWindow Base Rate. Source: Bloomberg, LP.The Reserve Bank of India uses the repurchase (repo) cutoffyield as its policy rate. Source: Bloomberg, LP.Indonesia Korea, Republic of Malaysia201816141210BI Rate866.54Inflation Rate2.7820Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-10864207-Day RepoRate2.8Inflation Rate 2.0Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-101086420-2-4OvernightPolicy RateInflation RateJan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-102.0-0.1Bank Indonesia uses its reference interest rate (BI rate) as itspolicy rate. Source: Bloomberg, LP.The Bank of Korea shifted its policy rate from the overnightrepurchase (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.PhilippinesThailandViet Nam14103012108642OvernightReverse RepoRateInflation Rate4.44.086420-2-41-Day RepoRateInflation Rate3.51.25272421181512963PrimeLending RateInflation Rate8.06.520Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-10-6Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-100Jan-05 Sep-05 Jun-06 Feb-07 Nov-07 Jul-08 Apr-09 Jan-10Bangko Sentral uses the Philippine overnight reverserepurchase agreement rate as one of its policyinstruments. Source: Bloomberg, LP.The Bank of Thailand replaced the 14-day repurchaserate with the 1-day repurchase rate in January 2007 asits policy rate. Source: Bloomberg, LP,The State Bank of Viet Nam uses a benchmark primelending rate as its policy rate. Source: Bloomberg, LP.…………………………………………………………………………………………………………………………………7


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS…………………………………………………………………………………………………………………………….......Credit Default Swap Spreads & Exchange Rate IndexesTip: Zoom-in on the table using the Acrobat zoom toolCredit Default Swap Spreads - Senior 5-year*14001400 China, People's Rep. of12001200Hong Kong, ChinaKorea, Rep. of10001000Mid spread in basis points800600800600JapanMalaysiaPhilippinesThailand400400Indonesia200200* In USD currency and basedon sovereign bonds0Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-100Source: Thomson DataStreamExchange Rate Indexes (vis-à-vis US$, 2 January 2007=100)130130120120China, People's Rep. ofIndonesia110110Korea, Rep. of100100MalaysiaPhilippines9090Thailand8080SingaporeViet Nam70706060Source: ADB-OREI staffcalculations based onBloomberg data.5050Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10…………………………………………………………………………………………………………………………………8


asianbondsonline.adb.org…………………………………………………………………………………………………………………………….......asiandbonsonline.adb.orgTip: Zoom-in on the table using the Acrobat zoom toolASIANBONDSONLINESelected Debt Security Issuances (Week of January 26 – February 1, 2010)DEBT HIGHLIGHTSAuctionAverage Coupon Amount Offered Amount IssuedMarkets DateType of SecurityYield (%) (in %) LCY Billions LCY BillionsPRC 19-Jan 1-year PBOC Bills 1.93 24.0 24.020-Jan 7-year China Development Bank Floating Rate Notes 20.0 40.021-Jan 91-day PBOC Bills 1.41 90.0 90.0HK 19-Jan 91-day Exchange Fund Bills 0.09 25.0 25.0182-day Exchange Fund Bills 0.15 9.0 9.0ID 19-Jan 5-year Islamic Bonds 8.70 55.07-year Islamic Bonds 9.19 * 1,000105.015-year Islamic Bonds 10.52 790.020-Jan 28-day SBI 6.45 43,000.028-day Shari'a SBI 6.45 1,205.0* 52,00091-day SBI 6.59 8,620.3182-day SBI 6.69 432.2KR 18-Jan 28-day Monetary Stabilization Bonds 2.19 3,800.0 3,800.091-day Monetary Stabilization Bonds 2.38 2,000.0 2,000.010-year Treasury Bonds 5.40 1,500.0 1,987.0JP 19-Jan 5-year Government Bonds 0.50 2,400.0 2,185.92-month Treasury Discount Bills 0.11 3,500.0 3,224.1PH 19-Jan 5-year Treasury Bonds 6.22 8.5 4.4SG 18-Jan 91-day Treasury Bills 0.43 3.4 3.4TH 18-Jan 28-day Treasury Bills 1.05 3.0 3.091-day Treasury Bills 1.18 5.0 5.0182-day Treasury Bills 1.27 5.0 5.019-Jan 28-day BOT Bills 1.10 12.0 12.091-day BOT bills 1.20 12.0 12.0182-day BOT bills 1.28 12.0 12.020-Jan 5.6-year Government bonds 3.35 12.0 12.07-year Government Bonds 3.69 7.0 7.0Sources: Local market sources and Bloomberg, LP.* - Overall indicative target for Indonesia's Islamic bond auction was at IDR1.0 trillion; target for SBI auction was at IDR52 trillion.…………………………………………………………………………………………………………………………………9


asianbondsonline.adb.org…………………………………………………………………………………………………………………………….......Selected Asia Data Releases ( 26 January - 1 February 2010 )asiandbonsonline.adb.orgTip: Zoom-in on the table using the Acrobat zoom toolCountry VariableReleaseDateHistoricalDataASIANBONDSONLINEDEBT HIGHLIGHTSRecent TrendsJapanBOJ Target Rate%JAN 26Republic of KoreaReal GDPYOY%4Q09MalaysiaOvernight Policy Rate%JAN 26SingaporeIndustrial ProductionYOY%DECPhilippinesGDPYOY%4Q09PhilippinesOvernight Borrowing Rate%JAN 28JapanCPIYOY%DECThailandTotal ExportsYOY%DECPeople’s Republic of ChinaPMI ManufacturingIndexJANIndonesiaCPIYOY%JANIndonesiaExportsYOY%DECRepublic of KoreaCPIYOY%JANThailandCPIYOY%JANSource: AsianBondsOnline, Bloomberg LP, and Reuters.01/26 12/08: 0.1%01/09: 0.1%11/09: 0.1%05/09: 12/09: 0.1% –23.8%01/26 3Q08: 3.1%4Q08: –3.4%2Q09: –2.2%05/09: 3Q09: 0.9% 205.101/26 12/08: 3.3%01/09: 2.5%11/09: 2.0%05/09: 12/09: 2.0% 171.801/26 11/08: –6.7%12/08: –13.4%10/09: 3.2%06/09: 11/09: –8.2% 2.0%01/28 3Q08: 4.6%4Q08: 2.9%2Q09: 0.8%04/09: 3Q09: 0.8% –11.4%01/28 12/08: 5.5%01/09: 5.0%11/09: 4.0%12/09: 4.0%06/09: 4.25%01/29 11/08: 1.0%12/08: 0.4%10/09: –2.5%11/09: –1.9%05/09: 64.301/29 11/08: –17.7%12/08: –15.7%10/09: –2.6%04/09: 11/09: 17.3% 18.4%02/01 12/08: 41.201/09: 45.311/09: 55.205/09: 12/09: 56.6 13.3902/01 12/08: 11.1%01/09: 9.2%11/09: 2.4%05/09: 12/09: 2.8% 25.70%02/01 11/08: –2.1%12/08: –20.0%10/09: 13.5%05/09: 11/09: 11.3% 25.70%02/01 12/08: 4.1%01/09: 3.7%11/09: 2.4%05/09: 12/09: 2.8% 25.70%02/01 12/08: 0.4%01/09: –0.4%11/09: 1.9%05/09: 12/09: 3.5% 25.70%The Bank of Japan’s (BOJ) target rate has been held steady at 0.1% sinceDecember 2008.Real gross domestic product (GDP) for the Republic of Korea (Korea) grew0.9% year-on-year (YOY) in 3Q09 after contracting in each of the previousthree quarters.Malaysia’s overnight policy rate remained unchanged at 2.0% in December.Singapore’s industrial production contracted 8.2% YOY in Novemberfollowing an expansion of 3.2% in September.Philippine GDP rose 0.8% YOY in 3Q09, which was the same GDP growthrate in the previous quarter.The overnight borrowing rate of the Philippines remained steady at 4.0% inDecember.Japan’s consumer price inflation was –1.9% in November compared to–2.5% in October.The total exports of Thailand climbed by 17.3% YOY in November afterincurring negative growth in each of the previous twelve months.The People’s Republic of China (PRC) registered a manufacturingpurchasing managers’ index (PMI) of 56.6 in December of 2009. A PMIreading above 50 suggests an expansion of manufacturing activity. ThePRC’s PMI has been above 50 since March 2009.Indonesia’s consumer price inflation was 2.8% in December after posting2.4% in November.Indonesian exports rose 11.3% YOY in November compared to a 13.5%export growth rate in October.Korea’s consumer price inflation was 2.8% in December, which is higherthan the November inflation rate of 2.4%.Consumer price inflation in Thailand reached a 14-month high of 3.5% inDecember.…………………………………………………………………………………………………………………………………10


asianbondsonline.adb.orgASIANBONDSONLINEDEBT HIGHLIGHTS…………………………………………………………………………………………………………………………….......News Articles: Sources for Further ReadingTip: Click on link to open a new browser (Acrobat Reader 8); for lower versions right-click to open a new browser)The People's Republic of China's (PRC) EconomyAccelerates in December• China Accelerates to 10.7% Growth Pace as BubbleDangers LoomBloomberg (21 January 2010)• China's GDP expands 8.7% in 2009, a V-shapedrecovery from economic downturnChina View (21 January 2010)Consumer Price Inflation Picks Up in the PRC; HongKong, China; and Malaysia• National Economy: Recovery and Posing in the GoodDirection in 2009National Bureau of Statistics (21 January 2010)• Consumer Price Indices for December 2009Census and Statistics Department (21 January 2010)• Consumer Price Index Malaysia December 2009Department of Statistics Malaysia (20 January 2010)• Malaysia CPI Positive for First Time in 6 MonthsBusiness Times (21 January 2010)Viet Nam Plans to Issue USD1 Billion of Global Bonds• Vietnam May Pay a Point More Than Indonesia on Debt(Update1)Bloomberg (20 January 2010)Singapore and Thailand See a Surge in Exports inDecember; Philippines Posts a Balance of PaymentsSurplus in 2009• Singapore's External Trade December 2009International Enterprise Singapore (18 January 2010)• Singapore Exports Surge as Electronics Slump EndsThe Edge Singapore (18 January 2010)• December Export Value Tops TargetBangkok Post (20 January 2010)• BOP Surplus Hits $5.26bManila Standard (19 January 2010)December Sales at Major Department and Discount StoresClimb in the Republic of Korea; Bank of Korea and Bank ofJapan Agree to Extend Measure to Increase Size of theKRW-JPY Swap Arrangement• Retail Sales Figures for December 2009Ministry of Knowledge Economy (19 January 2010)• Korea Department-Store Sales Rise at Fastest Pace in 16MonthsBloomberg (18 January 2010)• The Bank of Korea and the Bank of Japan announce theextension of the Measure to Increase the Size of the Won-Yen Swap ArrangementBank of Korea (19 January 2010)• Vietnam to issue international bonds for energy andtransport investmentIntellasia News (19 January 2010)• Vietnam to Sell $1 Billion of 10-Year Debt Next WeekBloomberg (15 January 2010)PSALM Plans to Issue PHP20 Billion in 1Q10• PSALM plans P20-Billion Bond Float in Q1BusinessWorld (21 January 2010)• PSALM to raise P20B from Bond MarketPhilippine Daily Inquirer (21 January 2010)Disclaimer: AsianBondsOnline Newsletter is available to users free of charge. The ADB provides no warranty or undertaking of any kind in respect to the information and materialsfound on, or linked to, AsianBondsOnline Newsletter. The ADB accepts no responsibility for the accuracy of the material posted or linked to the publication, or the informationcontained therein, or for any consequences arising from its use and does not invite or accept reliance being placed on any materials or information so provided. Views expressed inarticles marked with AsianBondsOnline are those of the authors, and not ADB. This disclaimer does not derogate from, and is in addition to, the general terms and conditionsregarding the use of the AsianBondsOnline Web Site, which also apply.…………………………………………………………………………………………………………………………………11

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