• Sovereign debt from South Korea and the Philippines both returned more than 5% in the three months following peaks in policy rates over the past decade, based on data compiled by Bloomberg.
  • Central banks in the two nations have been the most hawkish in the current cycle, suggesting their bonds may be among the first to recover as well.
  • Bonds from five out of six emerging-Asia debt markets, where policy makers are currently tightening, delivered positive returns in the three months following the end of recent rate-hike cycles, the Bloomberg study showed.