10 October 2011

onsumer price inflation in Indonesia eased to 4.6% year-on-year (y-o-y) in September as food prices declined. In the Republic of Korea, inflation eased to 4.3% y-o-y in September from 5.3% in August. Consumer price inflation in Thailand also fell in September to 4.0% y-o-y from 4.3% in the previous month due to a slowdown in rising energy prices and transport costs. Meanwhile, inflation in the Philippines inched up to 4.8% y-o-y in September from 4.7% in August. The People's Republic of China's (PRC) purchasing managers' index (PMI) for services rebounded to 59.3 in September from 57.3 in August, indicating a recovery in the services sector. In contrast, Singapore's manufacturing activity contracted for the third straight month in September, with the PMI at 48.3 in September. Indonesia's export growth eased to 37.1% y-o-y in August for total exports of USD18.8 billion after posting revised 39.5% annual growth in July. Indonesia's imports rose 23.7% y-o-y to USD15.1 billion in August, following revised 28.4% growth in the previous month. The trade surplus in August was USD3.8 billion. Malaysia's merchandise exports posted 10.9% growth in August, higher than the 7.1% export growth rate for July. Meanwhile, imports grew 6.9% y-o-y in August. Bank Indonesia (BI) issued new regulations governing export proceeds and foreign debt withdrawals. Under the new policy, exporters will be required to transfer their proceeds from offshore banks into domestic banks within 3 months of the date posted on the Export Declaration Form. Another new BI regulation requires debtors to conduct their foreign borrowing through domestic banks. Net foreign investment outflows from the Republic of Korea's LCY bond market were KRW2.5 billion in September. Net inflows in August totaled KRW134.0 billion. The largest net bond investment inflows in September came from Thailand (KRW726.5 billion), the US (KRW619.3 billion), Malaysia (KRW603.8 billion), and the PRC (KRW 400.3 billion). Thailand plans to begin targeting headline inflation instead of core inflation to attain greater flexibility in conducting monetary policy. The State Bank of Viet Nam raised its refinancing rate, one of its three policy rates, by 100 basis points to 15% effective today. The move is the fifth increase in the refinancing rate for the year.

Key Developments in Asian Local Currency Markets

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Asia Bond Monitor September 2011

10-Year Selected LCY Government Security Yields
Markets
Close of 7 October 2011

basis point change from Previous Week* 1-Jan-11* Latest Closing Previous Day*
2.08 2.00 0.99 3.93 1.25 8.58 6.87 3.70 3.83 5.89 1.63 3.56 12.64 8.92 6.00 1.00 0.00 0.90 0.90 -24.10 0.00 2.00 -5.78 0.00 -5.50 0.00 16.10 16.10 -121.71 11.50 -96.10 11.50 -4.40 -14.00 0.00 2.00 0.00 -1.50 -160.60 15.00 15.00 65.90 -4.80 -73.70 -0.20 -33.80 -12.00 -69.00 3.26 3.26 0.56 1.00 1.00 -108.00 -13.30 -16.70 -2.40 89.30

US EU Japan PR C H ong Kong, C hina India Indones ia Malays ia Korea, R ep. of Philippines Singapore Thailand Viet N am

-4.40

-1.50

-4.80 -0.20 -12.00

-13.30 -2.40

Selected Government Security Yields Benchmark Yield Curves - Local Currency Government Bonds 2-versus-10 Yield Spread Chart Policy Rate versus Inflation Rate Charts Credit Default Swap Spreads & Exchange Rate Indexes Selected Debt Security Issuances Selected Asia Data Releases

In Hong Kong, China, Sinotrans Shipping Inc. priced 3-year CNH bonds with a coupon of 3.3%. In Malaysia, Midciti Resources, which co-owns the Petronas Towers, sold MYR880 million worth of Islamic medium-term notes. The multi-tranche issuance include MYR280 million worth of 3-year notes with a 3.533% annual return, MYR270 million of 5-year notes at 3.919%, MYR240 million of 7-year notes at 4.07%, and MYR90 million of 10-year notes at 4.25%. Government bond yields fell last week for all tenors in the Republic of Korea and Thailand; and for most tenors in Hong Kong, China; and Malaysia, while yields rose for most tenors in Indonesia, the Philippines, Singapore and Viet Nam. The PRC market was closed due to the national holiday. Yield spread between 2- and 10- maturities widened only in Malaysia, while spreads narrowed in other emerging East Asian markets except for the PRC.

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Consumer Price Inflation Eases in Indonesia, Republic of Korea, and Thailand, Quickens in the Philippines

Consumer price inflation in Indonesia eased to 4.6% year-on-year (y-o-y) in September from 4.8% in August as food prices dropped following the end of holiday festivities. Despite slower overall inflation, prices of some goods such as chili, jewelry, and cigarettes remained high. On a month-on-month (m-o-m) basis, consumer price inflation eased to 0.3% in September from 0.9% in the previous month. Meanwhile, core inflation eased to 4.9% in September from 5.2% a month earlier. In the Republic of Korea, consumer price inflation eased to 4.3% y-o-y in September from 5.3% in August. The annual rise in consumer prices was mainly led by an 8.6% increase in transport costs, a 5.0% rise in housing and utility costs, and a 4.6% hike in food and non-alcoholic beverage prices. On a m-o-m basis, consumer prices rose only 0.1% from the previous month. In the Philippines, the headline inflation rate inched up to 4.8% y-o-y in September from 4.7% in August, marginally lower than the consensus estimate of 4.9%. Indices for clothing and footwear; housing, water, electricity, gas and other fuels; health; transport; and recreation and culture all increased on an annual basis. On m-o-m basis, prices of consumer items rose 0.2% in September from 0.1% in August due to escalating food prices for vegetables, fruits, milk, and milk products. Rising prices in many regions for alcoholic beverages, cigarettes, selected construction materials, and firewood also contributed to the uptrend. In Thailand, consumer price inflation weakened to 4.0% y-o-y in September from 4.3% in August. This was led by a slowdown in the rise in energy prices and transport costs, while food price increases remained steady. On a m-o-m basis, consumer prices fell 0.3% in September, with energy prices decreasing 5.7% and transport costs falling 2.4%. For inflation trends in Indonesia, refer to this link: http://asianbondsonline.adb.org/indonesia/data/marketwatch.php?code=policy_rate_and_inflation_trends For inflation trends in the Republic of Korea, refer to this link: http://asianbondsonline.adb.org/korea/data/marketwatch.php?code=policy_rate_and_inflation_trends For inflation trends in the Philippines, refer to this link: http://asianbondsonline.adb.org/philippines/data/marketwatch.php?code=policy_rate_and_inflation_trends For inflation trends in Thailand, refer to this link: http://asianbondsonline.adb.org/thailand/data/marketwatch.php?code=policy_rate_and_inflation_trends

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PRC's Services PMI Rises and Singapore's Manufacturing Activity Contracts in September; Hong Kong, China's Retail Sales Grows 29% in August

The People's Republic of China's (PRC) purchasing managers' index (PMI) for services rebounded to 59.3 in September from 57.3 in August, indicating a recovery in the services sector. In contrast, Singapore's manufacturing activity contracted for the third straight month in September. According to Singapore's Institute of Purchasing and Materials Management, the PMI fell to 48.3 in September from 49.4 in August. A reading above 50 indicates manufacturing expansion, while a reading below 50 indicates a contraction. The PMI for the electronics sector fell to 47.2 in September from 48.0 in the previous month. In Hong Kong, China, retail sales grew strongly at 29.0% y-o-y in September but was still slightly lower than July's 29.1%. The government attributes the robust growth to strong local demand and tourist spending. Growth was highest in the miscellaneous consumer category at 69.3% y-o-y, followed by sales in electrical goods and photographic equipment at 53.7%.

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Export Growth Eases in Indonesia, Increases in Malaysia

Indonesia's export growth eased to 37.1% y-o-y in August for total exports of USD18.8 billion after posting revised 39.5% annual growth in July. Oil and gas exports in August totaled USD4.1 billion, while non-oil and gas exports reached USD14.7 billion. The largest export markets in August were the PRC (USD1.9 billion), Japan (USD1.5 billion),

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Export Growth Eases in Indonesia, Increases in Malaysia (cont)

and India (USD1.4 billion). Meanwhile, imports rose 23.7% y-o-y to USD15.1 billion, following revised 28.4% import growth in the previous month. Indonesia's trade surplus in August was USD3.7 billion. Malaysia's merchandise exports posted 10.9% year-on-year (y-o-y) growth in August, higher than the 7.1% growth in July. Meanwhile, imports grew 6.9% y-o-y in August. On a month-on-month basis, exports were lower by 1.2% while imports fell by 4.4%. During the January to August period, total exports expanded by 7.4% y-o-y to MYR454.91 billion and total imports increased by 8.5% y-o-y to MYR375.33 billion. Malaysia's trade surplus reached MYR91.6 billion in the first eight months. For historical data on Indonesia's export growth, refer to this link: http://asianbondsonline.adb.org/indonesia/data/macroeconomic_credit.php For historical data on Malaysia's export growth, refer to this link: http://asianbondsonline.adb.org/malaysia/data/macroeconomic_credit.php

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BI Issues New Regulations

On 30 September Bank Indonesia (BI) issued new regulations governing export proceeds and foreign debt withdrawals. Under the new policies exporters will be required to transfer their proceeds from offshore banks into domestic banks within a period of 3 months after the date included on the Export Declaration Form. This policy will become effective on 2 January 2012. During the transition period exporters will be given up to 6 months from the Export Declaration Form date to comply with the new measure. Another new regulation issued by BI requires debtors to conduct their foreign borrowing through domestic banks. These new regulations apply to borrowing in cash, non-revolving loan agreements, and debt securities. According to BI, the main objective of these new policies is to strengthen macroeconomic stability, particularly exchange rate stability. BI governor Darmin Nasution said that the policies will improve the sustainability of foreign exchange flows into the domestic market by reducing dependence on short-term funding.

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Negative Net Investment in the Republic of Korea's LCY Bond Market in September

Net foreign investment outflows from the Republic of Korea's local currency (LCY) bond market totaled KRW2.5 billion in September following positive net inflows of KRW134.0 billion in August. The largest net bond investment inflows for the month came from Thailand (KRW726.5 billion), the United States (KRW619.3 billion), Malaysia (KRW603.8 billion), and the PRC (KRW400.3 billion). In contrast, the three largest net bond sales were made by investors from the United Kingdom (KRW924.6 billion), France (KRW823.5 billion), and Singapore (KRW816.1).

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Thailand Plans to Target Headline Inflation vs. Core Inflation

Thailand reported last week that it plans to begin targeting headline inflation instead of core inflation to attain greater flexibility in conducting monetary policy. The headline inflation target was set at 3.0% plus or minus 1.5 percentage points.

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Viet Nam Raises Refinance Rate to 15%

The State Bank of Viet Nam raised its refinancing rate, one of its three policy rates by 100 basis points to 15% effective today. The move is the fifth increase in the refinancing rate for the year and the country is currently experiencing substantial inflationary pressure. The inflation rate for September was at 22.4% y-o-y.

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Sinotrans Prices CNH Bonds; Owner of Petronas Towers Issues Sukuk

In Hong Kong, China, Sinotrans Shipping Inc. priced 3-year CNH bonds with a coupon of 3.3%. The bonds carry an irrevocable guarantee from Sinotrans Shipping (Holdings). In Malaysia, Midciti Resources, which co-owns the Petronas towers, sold MYR880 million worth of Islamic medium-term notes. The multi-tranche issuance includes MYR280 million worth of 3-year notes with a 3.533% annual coupon, MYR270 million of 5-year notes at 3.919%, MYR240 million of 7-year notes at 4.07%, and MYR90 million of 10-year notes at 4.25%. Proceeds from the issuance will be used to refinance existing bonds worth MYR799 million that will mature in November.

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Selected Government Security Yields

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3-Month Selected LCY Government Security Yields

Latest Closing 0.01 0.50 0.10 3.44 0.09 8.42 3.03 3.30 2.70 0.22 3.47 basis point change from Previous Previous 1-Jan-11* Day* Week* -1.52 0.51 -1.52 -11.46 11.40 1.60 11.40 10.10 0.00 0.00 0.00 -2.40 0.00 0.00 0.00 26.00 -2.00 -1.00 -2.00 -19.00 0.00 2.00 0.00 132.00 0.50 0.00 0.50 25.30 -1.00 0.00 -1.00 79.00 -4.50 15.75 -4.50 150.50 0.00 0.00 0.00 -17.00 -1.50 -0.26 -1.50 150.17

Markets US EU Japan PRC Hong Kong, China India Malaysia Korea, Rep. of Philippines Singapore Thailand

Close of 7 October 2011

10-Year Selected LCY Government Bond Yields

Latest Closing 2.08 2.00 0.99 3.93 1.25 8.58 6.87 3.70 3.83 5.89 1.63 3.56 12.64 basis point change from Previous Previous 1-Jan-11* Day* Week* 8.92 16.10 16.10 -121.71 6.00 11.50 11.50 -96.10 -4.40 1.00 -4.40 -14.00 0.00 0.00 0.00 2.00 -1.50 -1.50 0.90 -160.60 15.00 0.90 15.00 65.90 -4.80 -24.10 -4.80 -73.70 -0.20 -0.20 0.00 -33.80 2.00 -12.00 -12.00 -69.00 3.26 -5.78 3.26 0.56 1.00 0.00 1.00 -108.00 -5.50 -13.30 -13.30 -16.70 -2.40 0.00 -2.40 89.30

Markets US EU Japan PRC Hong Kong, China India Indones ia Malays ia Korea, Rep. of Philippines Singapore Thailand Viet Nam

Close of 7 October 2011

Source: Based on data from Bloomberg, LP.

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Benchmark Yield Curves Local Currency Government Bonds

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China, Peoples Rep. of

4.25 2.0

Hong Kong, China

9.0 8.0
Yield (%)

4.00
Yield (%)
Yield (%)

1.5

7.0 6.0 5.0 4.0

3.75

1.0

3.50

0.5

3.25 0 1 2 3 4 5 6 7 8 9 10 11 12

0.0 0 2 4 6 8 10 12 14 16

12

15

18

21

24

27

30

33

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Korea, Republic of
4.25 4.00 3.75 3.50 3.25 3.00 0 2 4 6 8 10 12 14 16 18 20 22 4.2 4.0 3.8
Yield (%)
Yield (%)

Malaysia
8.0 7.0 6.0
Yield (%)

Philippines

3.6 3.4 3.2 3.0 2.8 0 2 4 6 8 10 12 14 16 18 20 22

5.0 4.0 3.0 2.0 1.0 0.0 0 3 6 9 12 15 18 21 24 27

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11 07-Oct-11

Time to maturity (years)

30-Sep-11 23-Sep-11

Singapore
2.5 2.0 1.5 1.0 0.5 0.0 0 3 6 9 12 15 18 21
4.3

Thailand
12.8

Viet Nam

4.0
Yield (%) Yield (%)

12.5

Yield (%)

3.8

12.3

3.5

3.3 0 2 4 6 8 10 12 14 16

12.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

US
3.5 3.0 2.5
Yield (%)
3.0 2.5 2.0

EU
2.3 2.0 1.8 1.5
Yield (%)

Japan

Yield (%)

2.0 1.5 1.0 0.5 0.0 0 4 8 12 16 20 24 28 32

1.5 1.0 0.5 0.0 0 5 10 15 20 25 30

1.3 1.0 0.8 0.5 0.3 0.0 0 4 8 12 16 20 24 28 32 36 40

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Time to maturity (years)

07-Oct-11 30-Sep-11 23-Sep-11

Source: Based on data from Bloomberg.

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2-versus-10 Yield Spread Chart

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Yield Spread between the Two- and Ten-Year Government Bonds

China, People's Rep. of

7-Oct-11

Hong Kong, China Indonesia Korea, Rep. of Malaysia Philippines Singapore Thailand Viet Nam U.S. E.U. Japan 0 50 100 150 200 250 300

30-Sep-11 23-Sep-11

350

400

basis points

Source: Based on data from Bloomberg LP.

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India

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Policy Rate versus Inflation Rate Charts

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China, Peoples Rep. of

10 8 6 4 2 2 0 0 -2 -4 Jan-06 Inflation Rate -2 -4 Jan-06 1-year Lending Rate 6.56 6.20 6 4 8

Hong Kong, China

12 10 8 6 4 Inflation Rate 2 0 -2 Jan-06 Repurchase Cut-off Yield

5.7 HKMA Base Rate Inflation Rate

9.78 8.25

0.5

Dec-06

Dec-07

Nov-08

Nov-09

Oct-1 0

Oct-1 1

Dec-06

Dec-07

Nov-08

Nov-09

Oct-1 0

Oct-1 1

Dec-06

Dec-07

Nov-08

Nov-09

Oct-1 0

Oct-1 1

PRC uses 1-year lending rate as one of its policy rates. Source: Bloomberg LP.

The Hong Kong Monetary Authority maintains a Discount Window Base Rate. Source: Bloomberg LP.

The Reserve Bank of India uses the repurchase (repo) cutoff yield as its policy rate. Source: Bloomberg LP.

Indonesia
20 18 16 14 12 10 8 6 4 2 0 Jan-06 Dec-06 Dec-07 Nov-08 Nov-09 Oct-1 0 Oct-1 1 0 Jan-06 Dec-06 Inflation Rate 6.75 4.61 2 4 BI Rate 6 8

Korea, Republic of
10
c

Malaysia

7-Day Repo Rate

8 6 4 2 0

Overnight Policy Rate

4.30 3.25

3.30 3.00

Inflation Rate

-2 -4 Jan-06

Inflation Rate

Dec-07

Nov-08

Nov-09

Oct-1 0

Oct-1 1

Dec-06

Dec-07

Nov-08

Nov-09

Oct-1 0

Oct-1 1

Bank Indonesia uses its reference interest rate (BI rate) as its policy rate. Source: Bloomberg LP.

The Bank of Korea shifted its policy rate from the overnight repurchase (repo) rate to the 7-day repo rate in March 2008. Source: Bloomberg LP.

Bank Negara Malaysia uses the overnight policy rate (OPR) as its policy rate. Source: Bloomberg LP.

Philippines
12 10 8 6 4.80 4 2 0 Jan-06 4.50 0 -2 Overnight Reverse Repo Rate 10 8 Inflation Rate 6 4 2 1-Day Repo Rate

Thailand
30 Inflation Rate 27 24 4.03 3.50 21 18 15 12 9 6 -4 -6 Jan-06 3 Dec-06 Dec-07 Nov-08 Nov-09 Oct-1 0 Oct-1 1 0 Jan-06 Dec-06 Dec-07 Prime Lending Rate

Viet Nam

Inflation Rate 22.42

9.00

Dec-06

Dec-07

Nov-08

Nov-09

Oct-1 0

Oct-1 1

Nov-08

Nov-09

Oct-1 0

Oct-1 1

Bangko Sentral uses the Philippine overnight reverse repurchase agreement rate as one of its policy instruments. Source: Bloomberg LP.

The Bank of Thailand replaced the 14-day repurchase rate with the 1-day repurchase rate in January 2007 as its policy rate. Source: Bloomberg LP.

The State Bank of Viet Nam uses a benchmark prime lending rate as its policy rate. Source: Bloomberg LP.

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Credit Default Swap Spreads & Exchange Rate Indexes

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Credit Default Swap Spreads - Senior 5-year*

1,400
C hina , P e ople 's R e p. of

H ong K ong, C hina

1,200
Indone s ia

K ore a , R e p. of

1,000

Mid spread in basis points

J a pa n

M a la ys ia

800
P hilippine s

600

Tha ila nd

400

200

* In USD currency and based on sovereign bonds Source: Thomson Reuters

0 Dec-07

Dec-08

No v-09

O ct-10

O ct-11

Exchange Rate Indexes (vis--vis US$, 2 January 2007=100)

130 130
China , P e ople 's R e p. of

Indone s ia

120

120
Ma la ys ia

P hilippine s

110

110
Tha ila nd

100

100

S inga pore

Kore a , Re p. of

90

90
V ie t N a m

80

80

70

70

60

60

Source: ADB-OREI staff calculations based on Bloomberg data.

50 Jan - 07

A u g -07

M ar- 08

O ct-08

M ay-09

D ec-09

Ju l- 10

F eb -11

50 O ct- 11

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Selected Debt Security Issuances (3 7 October 2011)

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Mark ets
HK ID

A u c tio n D ate
4-Oct 4-Oct

T y p e o f S ec u rity
90-day Exchange Fund Bills 182 day Exchange Fund Bills 3-month Treasury Bills 1-year Treasury Bills 6-year Treasury Bonds 11-year Treasury Bonds 21-year Treasury Bonds

A v erag e C o u p o n A m o u n t O ffered A m o u n t Is s u ed (in % ) Y ield (% ) L C Y B illio n s L C Y B illio n s

0.12 0.13 5.46 5.76 6.43 7.20 7.70 0.10 1.00 0.10 3.40 3.52 3.52 3.59 3.04 3.03 3.02 3.02 0.16 3.49 3.50 3.58 3.63 1.00 3,500.00 2,200.00 5,100.00 1,200.00 500.00 1,000.00 1,800.00 1.50 1.00 1.50 1.50 3.90 17.00 17.00 15.00 60.00 27.47 9.00 27.47 9.00 750.00 3,000.00 950.00 950.00 350.00 3,499.92 2,198.99 5,059.97 1,050.00 500.00 1,000.00 1,800.00 1.50 1.00 1.50 1.50 3.90 17.00 17.00 15.00 60.00

JP

4-Oct 5-Oct

6-month Treasury Discount Bills 10-year Japan Government Bonds 3-month Treasury Discount Bills 91-day Monetary Stabilization Bonds 182-day Monetary Stabilization Bonds 3-year Treasury Bonds

KR

4-Oct

5-Oct MY 3-Oct 5-Oct SG TH 3-Oct 4-Oct

2-year Treasury Bonds 65-day BNM Islamic Notes 93-day BNM Notes 91-day BNM Islamic Notes 210-day BNM Notes 91-day Treasury Bills 28-day BOT Bills 91-day BOT Bills 182-day BOT Bills 365-day BOT Bills

Sources: Local market sources and Bloomberg, LP.

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Selected Asia Data Releases (11 - 17 October 2011)

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C o u n tr y / a r ia b le V
Indone s ia BI Re fe r e nce Rate % OCT 11 Japan Tr ade Balance BOP bas is JPY billion A UG M alays ia Indus tr ial Pr oduction y-o-y, % A UG M alays ia M anufactur ing Sale s V alue y-o-y, % A UG Philippine s Total Exports y-o-y, % A UG Philippine s M 3 M one y Supply y-o-y, % A UG Singapor e GDP y-o-y, % 3Q Pe ople s Re public of China Exports y-o-y, % SEP Pe ople s Re public of China Tr ade Balance USD billion SEP Re public of Kore a 7-Day Re pur chas e Rate % OCT 13 Japan M 3 M one y Supply y-o-y, % SEP Philippine s Ove r s e as Re m ittance s y-o-y, % A UG Singapor e Non-Oil Dom e s tic Expor ts y-o-y, % SEP

R e le a s e D a te
10/11

H is to r ic a l D a ta
09/10: 6.50% 10/10: 6.50% 08/11: 6.75% 09/11: 6.75% 07/10: 897.1 08/10: 170.6 06/11: 131.5 07/11: 123.3 07/10: 3.4% 08/10: 3.9% 06/11: 1.0% 07/11: 0.6% 07/10: 8.8% 08/10: 8.9% 06/11: 12.9% 07/11: 10.8% 07/10: 36.0% 08/10: 37.5% 06/11: 9.4% 07/11: 1.7% 07/10: 10.2% 08/10: 8.6% 06/11: 11.4% 07/11: 8.3% 2Q10: 19.4% 3Q10: 10.5% 1Q11: 9.3% 2Q11: 0.9% 2Q10: 19.4% 3Q10: 10.5% 1Q11: 9.3% 2Q11: 0.9% 08/10: 20.0 09/10: 16.9 07/11: 31.5 08/11: 17.8 09/10: 2.25% 10/10: 2.25% 08/11: 3.25% 09/11: 3.25% 08/10: 2.1% 09/10: 2.1% 07/11: 2.4% 08/11: 2.2% 07/10: 8.2% 08/10: 9.8% 06/11: 7.0% 07/11: 6.1% 08/10: 30.8% 09/10: 22.6% 07/11: 2.8% 08/11: 5.1%

R ec en t T ren d s
Bank Indonesia (BI) has kept its benchmark rate steady at 6.75% since February.

10/11

Japans trade balanceon a balance of payments (BOP) basisf ell to JPY 123.3 billion in July f rom JPY 131.5 billion in June.

10/11

Industrial production in Malaysia declined 0.6% year-on-year (y-o-y) in July af ter posting 1.0% grow th in June.

10/11

Grow th in Malaysias manuf acturing sales value eased to 10.8% y-o-y in July f rom 12.9% in the previous month.

10/11

Philippine exports contracted 1.7% y-o-y in July f ollow ing a much larger decline of 9.4% in June.

10/11

Grow th in the M3 money supply of the Philippines slow ed to 8.3% y-o-y in July f rom 11.4% in June.

10/12-10/14

Singapores gross domestic product (GDP) grow th slow ed signif icantly to 0.9% y-o-y in 2Q11 f rom 9.3% in 1Q11.

10/13

The Peoples Republic of Chinas export grow th rose in A ugust to 24.5% y-o-y f rom 20.4% in July.

10/13

The Peoples Republic of Chinas trade surplus in A ugust f ell to $17.8 billion f rom $31.5 billion in July.

10/13

The Bank of Koreas Monetary Policy Committee held the 7-day repurchase rate steady at 3.25% at its 8 September meeting.

10/14

The grow th rate of Japans M3 money supply tapered to 2.2% y-o-y in A ugust f rom a high of 2.4% in July.

10/17

Grow th in overseas Filipino w orkers remittances to the Philippines eased to 6.1% yo-y in July f rom 7.0% in June.

10/17

Singapores non-oil domestic exports grew 5.1% y-o-y in A ugust, a reversal of the 2.8% drop registered in July.

Source: AsianBondsOnline, Bloomberg LP, and Reuters.

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News Articles: Sources for Further Reading

Tip: Click on link to open a new browser (Acrobat Reader 8); for lower versions right-click to open a new browser) Consumer Price Inflation Eases in Indonesia, Republic of Korea, and Thailand, Quickens in the Philippines Indonesia September Inflation Slows, Rate Seen on Hold The Jakarta Globe (03 October 2011) Consumer Price Index in September 2011 Statistics Korea (06 October 2011) SUMMARY INFLATION REPORT National Statistics Office (05 October 2011) Thailands Inflation Eases to Six-Month Low as Falling Fuel Counters Food Bloomberg (06 October 2011) Viet Nam Raises Refinance Rate to 15% UPDATE 1-Vietnam raises refinance rate to 15 pct central bank Reuters (07 October 2011)

Sinotrans Prices CNH Bonds; Owner of Petronas Towers Issues Sukuk Twin towers go private in return to ringgit paper IFR Asia (01 October 2011) BONDS: Sinotrans Shipping raises Rmb2.6bn via 3-yr Dim Sum IFRAsia (04 October 2011)

PRCs Services PMI Rises and Singapores Manufacturing Activity Contracts in September; Hong Kong, Chinas Retail Sales Grows 29% in AugustChina Manufacturing Counters Hard Landing China Services Indexes Increased in September, Pointing to Faster Growth Bloomberg (04 October 2011) Singapore manufacturing activity slows Channel News Asia (04 October 2011) Provisional statistics of retail sales for August 2011 Census and Statistics Department (03 October 2011)

Export Growth Eases in Indonesia, Rises in Malaysia Indonesia's total exports in August read us$18.81 billion Antara News (03 October 2011) Preliminary Release of Malaysia External Trade Statistics August 2011 Department of Statistics Malaysia (07 October 2011)

BI Issues New Regulations Bank Indonesia Published a New Policy on Export Proceeds and Foreign Debt Withdrawal Bank Indonesia (03 October 2011)

Negative Net Investment in the Republic of Koreas LCY Bond Market in September Foreign Investments in Domestic Securities in September 2011 Financial Supervisory Service (06 October 2011)

Thailand Plans to Target Headline Inflation vs. Core Inflation Thailand May Target Headline Inflation Rather than Core Reuters (06 October 2011)

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