ASEAN+3 is the second-largest sustainable bond market in the world.

DNHN - At the end of March, according to the ADB, the total amount of local currency bonds in emerging East Asia rose 9.1% year-over-year to $23.8 trillion.

According to the newly published Asian Bonds Monitor by the Asian Development Bank (ADB), financial conditions in the region have remained stable despite lingering uncertainty over monetary policy. Between March 1 and June 2, stock markets fell and the local currency weakened against the dollar, while the risk premium decreased.

According to the report, emerging East Asia's total local currency bond holdings increased by 9.1% year-over-year to $23.8 trillion at the end of March. Primarily because governments issued massive amounts of debt to finance economic recovery programs at the beginning of the year. The issuance of corporate bonds remained at a moderate level, in part due to higher interest rates.

Quarter-over-quarter growth in emerging East Asia and Japan's sustainable bond markets slowed to 5.9%, with the total value of sustainable bonds reaching $633.9 billion by March's end.

Even though the region requires more local currency and long-term financing, the ASEAN+3 region remains the second-largest sustainable bond market in the world, according to the report. Sustainable bond issuance is dominated by green bonds, local currency financing, and issuance by the private sector.

According to the ADB, the expansion of both the government and corporate bond segments in Vietnam contributed to the growth of the country's overall bond market by 5.1% quarter-over-quarter to $111.9 billion. After the government eased some bond regulations, corporate bond activity increased, resulting in re-issuance this quarter.

The State Bank of Vietnam (SBV) loosened monetary policy from 1 March to 2 June to support economic growth and promote stability, resulting in a decrease in interest rates for all maturities of government bonds. financing, particularly in the real estate industry.

Ngoc Phi (TH)