Asia Steps Up Bond Support as Energy Shock Sends Yields Surging

This month’s surge in Asian bond yields has triggered an increase in debt buying across the region, as governments seek to limit the spillover from higher energy prices to local borrowing costs.

Governments and central banks from South Korea to India and Indonesia are plowing funds into their bond markets to try to cap yields that have already risen to multi-year highs. Yields have been climbing on concern local economies will suffer from higher oil costs as they are net energy importers.