Oil-Driven Inflation Fears Are Reshaping Asian Yield Curves

A reset in some of emerging Asia’s bond yield curves may be imminent as analysts signal an end to the recent surge in borrowing costs.

The faster rise in medium-term yields compared with longer-maturity ones has squeezed the gap between them this month, bear-flattening the bond curve. That’s because investors started pricing in interest-rate hikes to counter the impact of rising oil prices on inflation.