Every week we give you our summary of happenings in the bond market.
Market focus returns to fundamentals and policy this week as the North Korean inspired risk-on/risk-off sentiment fades, for now. Locally, bond bulls are likely to be enticed by strengthening disinflationary forces, evidenced by Wednesday consumer price inflation print. However, the bond market shouldn’t lose focus of the urgency of growth enhancing policy reform, and improving the governance and management of State-Owner Enterprises, as highlighted by Moody’s in the past week. Ratings risk lingers for as long as these calls fall on deaf ears.