Asian bonds show strength

Asian bonds show strength

HONG KONG (Bloomberg): Asian bonds rallied last week, after
Malaysia sold its first government bonds in nine years, while
benchmark U.S. dollar bonds rose in every country except India,
which fell on concern over military clashes with Pakistan.

Priced to yield 330 basis points more than their U.S.
Treasury counterparts, the yield of Malaysia's $1 billion of 10-
year bonds, which had narrowed to as little as 292 basis
points,finished the week at about 305.

The sale came despite speculation that investor concern about
emerging market risk could derail the issue.

In Indonesia, the yield on the government's 10-year Yankee
bonds due 2006 fell 25 basis points to 795 as investors reckoned
the bonds were cheap, traders said. During the previous two
weeks, the bonds' yield ballooned to 820 basis points more than
Treasuries, from 640 basis points.

The yield on South Korea's 10-year global bonds due 2008 fell
20 basis points to 240 basis points more than U.S. Treasuries of
similar maturity, traders said. The yield on China's bonds
maturing 2008 fell 15 basis points to 205 more than Treasuries.