Improving global growth and low inflation should be supportive forces for Asian bonds in 2018 but higher oil prices could be a headwind for the region.
A solid global backdrop, improving fundamentals and relatively attractive income to drive continued, albeit more modest, gains in 2018 despite increased country divergence.
Investors often fear a flattening of the US yield curve as it tends to suggest a lower growth environment ahead. But we think quantitative tightening will likely have an unprecedented impact on the US bond market, just as QE did.
Russian growth slowed more than the market expected in the third quarter, supporting the argument for further rate cuts by the central bank.
Latest payroll data sees jobs market rebound and keeps the prospect of a further rate rise in December on the cards. But wages stay subdued.