Emerging market bonds have had their best start to the year on record as new issuance has surged and interest rate premiums over US Treasuries have narrowed to their lowest since 2008.
Sovereign bond markets in developing countries have seen a record $129bn in new deals so far this year, a 42 per cent increase over the same period last year, the previous record for issuance, according to Dealogic.
Bond yields, which have been tightening since March last year, have narrowed further in the past two weeks as the success of Greece's new debt offering at the start of the month stabilised markets.
Emerging market yields narrowed to 2.57 percentage points over US Treasuries yesterday compared with 3.5 percentage points a month ago, according to JPMorgan's Embi+ index.
据摩根大通新兴市场债券指数(JPMorgan's Embi Index)显示，新兴市场债券与美国国债的息差昨日已收窄至2.57个百分点，而一个月前为3.5个百分点。
That is a sharp fall from the recent cyclical peak of 6.84 percentage points in March last year and a fraction of the all-time peak of 16.64 percentage points over US Treasuries in September 1998.
The index, which tracks the 16 biggest emerging bond markets, was launched at the end of 1997 after the Asian financial crisis.
Bryan Pascoe, global head of debt syndication at HSBC, said that optimism surrounding Greece had boosted emerging market bonds, allowing governments to lock in low borrowing rates.
However, other bankers warn that a sell-off may be imminent as interest rate spreads over benchmark bonds have tightened too far, particularly in markets such as Indonesia and Brazil, which have been among the best performers.
Nigel Rendell, senior emerging markets strategist at RBC Capital Markets, said: “It is a good time for investors to take some profits and wait for a better time to buy as the market is almost certain to fall in the next few months.”
加拿大皇家银行资本市场(RBC Capital Markets)新兴市场高级策略师奈吉尔?兰德尔(Nigel Rendell)表示：“现在正是投资者锁定一些利润，然后等待更好的买入时机的好时机，因为在未来几个月，市场几乎肯定会下跌。”
Chinese companies have for the first time issued more corporate bonds than their Japanese counterparts over the past year, marking another milestone in the development of China's c
Chinese investors bought a net Y541bn ($6.2bn) of Japanese government bonds in the first four months of the year amid concerns over Europe's debt woes.因对欧洲的债务困境感到担心，中