Thailand, Philippines Yield Curves Hit 3-Year Highs as Oil Pressures Deepen
Updated
Updated · Bloomberg · May 21
Thailand, Philippines Yield Curves Hit 3-Year Highs as Oil Pressures Deepen
2 articles · Updated · Bloomberg · May 21
Thailand and the Philippines saw the gap between 2- and 10-year government bond yields widen to the broadest level in more than three years this month.
Elevated oil prices are driving the steepening by stoking inflation risks and worsening fiscal pressure across Southeast Asian economies.
Malaysia has also seen a key stretch of its yield curve steepen since the Iran war began, suggesting the move is spreading across the region.
The report says curves in key Southeast Asian bond markets may steepen further if oil stays high, raising borrowing-cost and budget risks.
Can Southeast Asian nations avoid a debt crisis while battling war-fueled inflation with costly public subsidies?
With yield curves signaling distress, is a regional financial crisis the next shockwave from the Iran war?