BENGALURU- Asian bonds attracted foreign inflows for the first time in four months in February, as investors sought safer options with regional equities suffering from tensions over US tariffs and reduced profit prospects due to trade distortions.
The attraction to regional bonds was further supported by falling US bond yields due to signs of a slowing economy and ongoing uncertainty over the impact of tariffs implemented by President Donald Trump.
Foreigners purchased $2.99 billion worth of regional bonds on a net basis last month, compared with about $266 million worth in January, according to data from regulatory authorities and bond market associations in South Korea, India, Indonesia, Thailand and Malaysia.
Foreigners purchased South Korean bonds worth a net $3.88 billion, registering their largest monthly net purchase since October 2024.
Indonesian bonds also drew about $100 million worth of foreign inflows, although a steep decline from $1.1 billion worth of net cross-border purchases the prior month.
Indian, Malaysian and Thai bonds, meanwhile, experienced foreign outflows worth $634 million, $253 million and $98 million, respectively.
