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Asia Pacific Dollar Bonds Hit Two-Year Yield Peak
7 Oct
Summary
- Asia Pacific borrowers are reducing deals in the dollar bond market.
- Yields have reached their highest levels in over two years.
- No regional issuer has sold dollar bonds in the syndicated market this month.
Dealmaking within the Asia Pacific's dollar bond market is experiencing a significant slowdown. This cooling trend is directly attributed to elevated yields, which have climbed to their highest point in more than two years, thereby dampening investor enthusiasm and deal momentum.
As a result of these high yields, no issuer from the Asia Pacific region has managed to sell a bond denominated in US dollars in the syndicated market so far this month. This marks a notable pause in activity, reflecting the challenging financing conditions currently in place.
This slowdown follows a broader trend, as debt sales from the region in the third quarter experienced a substantial decline of 10%. The combination of increasing borrowing costs and reduced market access presents a considerable hurdle for companies in Asia Pacific seeking to raise capital through dollar bonds.
