Bonds’ appeal wanes for investorsBond investors in three of Asia’s biggest emerging mar-kets aren’t buying even as government borrowing rises.
This is an ominous sign for policy makers trying to revive growth with fiscal stimulus, reports Bloomberg. In India, dwindling appetite for sovereign bonds drove yields to their biggest increase in more than two years last month.
Indonesia’s latest bond auction drew the fewest bids since April. Rates in South Korea surged to the highest level in five months.
Governments globally are selling sovereign bonds faster than central banks can buy them, but there is no assurance the spending will pull up economies.