25 June 2012 asianbondsonline.adb.org

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Key Developments in Asian Local Currency Markets

1

he Hong Kong Monetary Authority (HKMA) signed last week bilateral agreements with Euroclear Bank and J.P. Morgan to launch a cross-border collateral management service. This service will allow international financial institutions to use securities held with Euroclear Bank or J.P. Morgan as collateral in tri-party repo transactions with members of HKMA's Central Moneymarkets Unit in order to access liquidity from Hong Kong, China,

particularly HKD and CNH funding.

Hong Kong, China's consumer price inflation moderated in May as overall consumer prices rose 4.3% year-on-year (y-o-y), compared with a 4.7% rise in April. Malaysia's consumer price inflation eased to 1.7% y-o-y in May from 1.9% in April. Viet Nam's consumer price inflation decelerated to 6.90% y-o-y in June from 8.34% in May.

Discount chain sales in the Republic of Korea fell 5.7% y-o-y, while department store sales increased 1.0% y-o-y in May. Domestic car sales in Thailand surged 107.6% y-o-y in May.

LCY corporate bond issuance in the Republic of Korea dropped 20.0% month-on-month (m-o-m) to KRW8.2 trillion in May. Thailand's Ministry of Finance recently permitted five foreign entities to issue THB-denominated bonds or debentures up until 31 January 2013.

Fitch Ratings last week affirmed the long-term FCY and LCY issuer default ratings of the Philippines at BB+ and BBB-, respectively, with a stable outlook for both ratings. Moody's Investor Service reported last week that Singapore's economy is both strong and highly resilient to global economic shocks.

In Hong Kong, China, the government last week issued its second round of inflation-linked retail bond worth HKD10 billion. Meanwhile, Medco Energi Internasional-an Indonesian oil and gas company-issued IDR1.5 trillion in 5-year bonds. In Malaysia, PTPTN priced MYR2.5 billion worth of 10-year sukuk. In Singapore, the Housing and Development Board (HDB) issued SGD500 million worth of 7-year fixed rate notes last week. In the Philippines, SM Investment Corporation plans to raise PHP10 billion from a dual-tranche bond sale in July.

Last week, Korea Exchange Bank priced US$700 million worth of 5-year bonds, IOI

Corporation based in Malaysia priced US$600 million worth of 10-year bonds, Hang Lung Properties priced a 10-year bond worth US$500 million, First Pacific Company sold US$400 million worth of 7-year bonds, global logistics provider UPS raised CNH630 million from a dual-tranche commercial paper sale in Hong Kong, China, and Veolia Environment priced CNH500 million worth of 5-year bonds.

Foreign ownership of Japanese Government Bonds (JGBs) rose to 8.3% in the fiscal year ended March 2012.

The Bank of Thailand and Monetary Authority of Singapore signed last week a Memorandum of Understanding to establish a reciprocal cross-border collateral arrangement.

Government bond yields fell last week for most tenors in Indonesia, the Philippines, and Hong Kong, China. In contrast, yields rose for all tenors in Viet Nam and for most tenors in the People's Republic of China (PRC), Republic of Korea, and Singapore. Yield movements were mixed in Malaysia and Thailand. Yield spreads between 2- and 10-year tenors tenors widened in Malaysia and Singapore while spreads narrowed in most other emerging East Asian markets.

T Asia Bond Monitor April 2012 read more

10-Year Selected LCY Government Security Yields Close of 22 June 2012 basis point change from

Markets Latest Closing Previous Day* Previous Week* 1-Jan-12*

Selected Benchmark Yield Curves — Local Currency Government

Policy Rate versus Inflation Rate Charts

Government Security Yields

Credit Default Swap Spreads and Exchange Rate IndexesSelected Debt Security IssuancesSelected Asia Data Releases

2- versus 10- Year Yield Spread Chart

US 1.67 5.80 9.69 -20.20EU 1.58 4.70 14.40 -24.80Japan 0.83 0.80 -2.30 -15.80PRC 3.41 0.00 1.00 -3.00Hong Kong, China 0.99 -0.80 -5.40 -48.00India 8.08 2.60 3.20 -48.30Indonesia 6.20 5.50 -17.30 17.30Korea, Rep. of 3.64 -2.00 0.00 -15.00Malaysia 3.52 -0.40 0.40 -17.70Philippines 5.34 1.32 -5.62 25.46Singapore 1.46 0.00 5.00 -17.00Thailand 3.49 -1.70 -0.30 20.50Viet Nam 10.08 2.50 10.80 -241.70

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DEBT HIGHLIGHTSASIANBONDSONLINE

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Summary Text of News Articles

HKMA, Euroclear Bank, and J.P. Morgan Launch Cross-Border Collateral Management Service ....................................................................................................................... The Hong Kong Monetary Authority (HKMA) last week signed bilateral agreements with Euroclear Bank and J.P. Morgan Worldwide Securities Services (J.P. Morgan), launching a cross-border collateral management service that will allow international financial institutions to use securities held with Euroclear Bank or J.P. Morgan as collateral in tri-party repo transactions with members of HKMA's Central Moneymarkets Unit in order to access liquidity from Hong Kong, China, particularly HKD and CNH funding.

Consumer Price Inflation Moderates in Hong Kong, China and Malaysia in May and in Viet Nam in June ....................................................................................................................... The composite consumer price index in Hong Kong, China rose 4.3% year-on-year (y-o-y) in May, following a 4.7% gain in April. The slower y-o-y increase in overall consumer prices for May was the result of a relatively small rise in food prices and housing rentals. Food prices rose 8.5% y-o-y in May after an 8.8% hike in April, while housing rentals climbed 6.3% y-o-y in May following a 7.2% rise in April.

Malaysia's consumer price inflation eased to 1.7% y-o-y in May from 1.9% in April. On a month-on-month (m-o-m) basis, consumer prices increased 0.2% in May. Non-food price inflation slowed to 1.2% y-o-y in May from 1.6% in April. The price index of food and non-alcoholic beverages rose 3.0% y-o-y in May, following a 2.3% gain in April. For the January-May period, consumer price inflation stood at 2.1% y-o-y.

In Viet Nam, consumer price inflation decelerated to 6.90% y-o-y in June from 8.34% in May on the back of slower y-o-y growth in food prices.

For historical data on Hong Kong, China's consumer price inflation, refer to this link: http://asianbondsonline.adb.org/hongkong/data/macroeconomic_credit.php

For historical data on Malaysia's consumer price inflation, refer to this link: http://asianbondsonline.adb.org/malaysia/data/macroeconomic_credit.php

For historical data on Viet Nam's consumer price inflation, refer to this link: http://asianbondsonline.adb.org/vietnam/data/macroeconomic_credit.php

Discount Chain Sales Fall and Department Store Sales Rise in the Republic of Korea in May; Car Sales Improve in Thailand in May .......................................................................................................................

Retail sales of the three major discount chains in the Republic of Korea fell 5.7% y-o-y in May. According to the Ministry of Knowledge Economy, this drop was due to higher food costs and a new law that allows local governments to require large retailers to close on certain days of the month. Meanwhile, department store sales increased 1.0% y-o-y, led by positive growth in sales of children's goods, sporting items, luxury goods, and general goods.

Meanwhile, Thailand's domestic car sales surged 107.6% y-o-y to 115,943 units in May, while car exports increased 122.4% y-o-y to 85,988 units.

For historical data on the Republic of Korea's department store sales growth, refer to this link: http://asianbondsonline.adb.org/korea/data/macroeconomic_credit.php

LCY Corporate Bond Issuance Falls 20% m-o-m in the Republic of Korea in May; Thailand Allows Five Foreign Entities to Issue THB-Denominated Bonds .......................................................................................................................

Local currency (LCY) corporate bond issuance weakened in the Republic of Korea as total LCY corporate bond issues fell to KRW8.2 trillion in May from KRW10.2 trillion in April, according to Financial Supervisory Service (FSS) data. The monthly drop was led by a 66.3% month-on-month (m-o-m) fall in issuance of non-financial bonds, which leveled off at KRW1.6 trillion in May. In contrast, issuance of asset-backed securities (ABS) rose 6.4% m-o-m to KRW1.5 trillion, issuance of bank debentures climbed 1.1% m-o-m to KRW2.7 trillion, and financial bond issues jumped 70.5% m-o-m to KRW2.3 trillion.

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Summary Text of News Articles

LCY Corporate Bond Issuance Falls 20% m-o-m in the Republic of Korea in May; Thailand Allows Five Foreign Entities to Issue THB-Denominated Bonds (cont…) .......................................................................................................................

In Thailand, the Ministry of Finance (MOF) announced last week that it would permit five foreign entities to sell THB-denominated bonds or debentures up until 31 January 2013. The five foreign entities are (i) International Bank for Reconstruction and Development (THB5 billion), (ii) International Finance Corporation (THB5 billion), (iii) Swedish Export Credit Corporation (THB5 billion), (iv) Korea Gas Corporation (THB8 billion), and (v) Kookmin Bank (THB10 billion).

Fitch Affirms Issuer Default Ratings for the Philippines; Moody's Reports on Singapore's Economy Strength and Resiliency to Global Economic Shocks .......................................................................................................................

Fitch Ratings last week affirmed the long-term FCY and LCY issuer default ratings of the Philippines at BB+ and BBB-, respectively, with a stable outlook for both ratings. The ratings agency noted that the country enjoys favorable economic prospects in the near-term, however, structural weaknesses-including low average income, a weak business environment, and low revenue collections-are keeping the country from receiving an upgrade.

Moody's Investor Service reported last week that Singapore's economy has shown "a very high degree of resilience to global economic shocks." It noted that Singapore's economic strength is "very high," as evidenced by the country's high per capita income and growth rate. It also noted that the government's financial position remains strong as it is supported by the substantial accumulation of public savings, fiscal prudence, and a fully funded public pension system. Moody's also cited Singapore's strong and well-managed financial system that has been fostered by a sound regulatory and supervisory framework.

Hong Kong, China Sells HKD10 Billion Inflation-Linked Retail Bond; Bank Permata Sells IDR700 Billion 7-Year Subordinated Bond; Medco Energi Internasional Issues IDR1.5 Trillion 5-Year Bond;

Indomobil Wanana Trada Raises IDR599 Billion from Triple-Tranche Bond Sale; Hong Leong Bank Sells MYR1.5 Billion 12-Year Senior Subordinated Note;

PTPTN Issues MYR2.5 Billion 10-Year Sukuk; SMIC to Sell PHP10 Billion Bond; HDB Issues SGD500 Million 7-Year Fixed Rates Note .......................................................................................................................

In Hong Kong, China last week, the government issued its second round of inflation-linked retail bonds, or iBonds. The amount issued was HKD10 billion, with dealings and listing of the bond on Hong Kong, China's stock exchange on 25 June.

Bank Permata raised IDR700 billion from the sale of a 7-year subordinated bond in Indonesia last week. The bond carries a coupon of 8.9%. The sale is part of the bank's bond program to raise up to IDR2.5 trillion over the next 2 years. Proceeds from the subdebt issue will be used to boost bank capitalization.

Medco Energi Internasional, an Indonesian oil and gas company, issued IDR1.5 trillion in 5-year bonds last week. The bond carries a coupon of 8.75% and received a rating of idAA- from Pefindo. Proceeds from the bond sale will be used to fund the acquisition of oil and gas assets in Indonesia and overseas.

Indomobil Wahana Trada raised a total of IDR599 billion in a three-tranche bond sale. The bonds consisted of IDR271 billion worth of 371-day bonds with a coupon of 7.15%, IDR147 billion of 3-year bonds with a coupon of 8.40%, and IDR181 billion of 5-year term bonds with a coupon of 8.75%.

In Malaysia, Hong Leong Bank raised MYR1.5 billion from the sale of 12-year senior subordinated notes last week. The notes, rated AA2 by RAM Ratings, carry a coupon of 4.5% and are callable in the seventh year. Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN)-Malaysia's National Higher Education Fund Corporation-issued MYR2.5 billion worth of 10-year sukuk (Islamic bonds). The sukuk, issued under the principle of murahaba (cost-plus financing), pay an annual profit of 3.85%.

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Summary Text of News Articles

Hong Kong, China Sells HKD10 Billion Inflation-Linked Retail Bond; Bank Permata Sells IDR700 Billion 7-Year Subordinated Bond; Medco Energi Internasional Issues IDR1.5 Trillion 5-Year Bond;

Indomobil Wanana Trada Raises IDR599 Billion from Triple-Tranche Bond Sale; Hong Leong Bank Sells MYR1.5 Billion 12-Year Senior Subordinated Note;

PTPTN Issues MYR2.5 Billion 10-Year Sukuk; SMIC to Sell PHP10 Billion Bond; HDB Issues SGD500 Million 7-Year Fixed Rates Note (cont…) .......................................................................................................................

Last week in the Philippines, SM Investments Corporation (SMIC) set the coupon rates for its upcoming 7- and 10-year retail bonds, which together have a total issue size of PHP10 billion. The coupon rate for the 7-year bonds is 6.0% per annum while the 10-year bonds were set at 6.9442%. The bonds are rated PRS Aaa by Philippine Rating Services Corporation (PhilRatings). The offering period is from 27 June to 6 July, while issuance was scheduled for 16 July. The bookrunners for this issue are BDO Capital & Investment Corporation, First Metro Investment Corporation, BPI Capital Corporation, and China Banking Corporation.

In Singapore, the Housing and Development Board (HDB) issued SGD500 million worth of 7-year fixed rate notes under its SGD22 billion Multicurrency Medium-Term Notes Programme. The notes carry a 1.52% annual coupon.

Korea Exchange Bank Prices US$700 Million 5-Year Bond; IOI Corporation Prices US$600 Million 10-Year Bond; Hang Lung Properties Prices US$500 Million 10-Year Bond; First Pacific Company Sells US$400 Million 7-Year Bond;

UPS Raises CNH630 Million from Dual-Tranche Commercial Paper Sale; Veolia Environment Prices CNH500 Million 5-Year Bond .......................................................................................................................

Korea Exchange Bank priced a US$700 million 5-year bond at a coupon rate of 3.125% last week. Investors from Asia took 55% of the total, 28% of investors were from the United States (US), and 17% came from Europe. Meanwhile, IOI Corporation based in Malaysia priced a US$600 million 10-year bond at a coupon rate of 4.375% last week. Of the total, 79% were allocated to Asian investors while the rest were taken up by European investors.

Hang Lung Properties-a real estate company based in Hong Kong, China-priced a 10-year bond worth US$500 million. The bond was priced to yield 4.936% and has a 4.75% coupon. Despite being unrated, demand for the bond was strong with orders of more than US$4.7 billion. Investors in Asia took the bulk with 93% of total orders.

First Pacific Company Limited-an investment management and holding company based in Hong Kong, China with majority of its assets in the Philippines-sold at par a US$400 million 7-year bond with a coupon of 6%. The bonds were not rated by any credit ratings agency. Asian investors accounted for 84% of the orders-with 18% coming from the Philippines-while the rest were bought by European investors. Hong Kong Shanghai Banking Corporation and Mizuho Securities were the joint lead managers. The proceeds will be used for general corporate purposes.

UPS, a global logistics provider, became the first non-financial institutions to issue CNH commercial paper. The issuance comprised a CNH300 million 52-day tranche and a CNH330 million 90-day tranche. The 52-day tranche was priced at a yield of 2.15%, while the 90-day tranche was priced at a yield of 2.2%.

Veolia Environment, a global operator of environmental services, priced a CNH500 million 5-year bond at a yield of 4.7% and with a coupon of 4.5% last week. The bond is rated Baa1 by Moody's and BBB+ by Standard and Poor's. This will be the first CNH bond to be listed on Euronext Paris, France's securities exchange.

Foreign Ownership of Japanese Government Bonds Increases at end-March ....................................................................................................................... Foreign ownership of Japanese Government Bonds (JGBs) rose to 8.3% in the fiscal year ended March 2012, signaling increasing reliance on foreign investors to finance the world's largest public debt. In the last three quarters, foreign ownership of JGBs has fluctuated between 8.3% and 8.5%.

For historical data on Japan's foreign holdings in government bonds, refer to this link: http://asianbondsonline.adb.org/japan/data/bondmarket.php?code=Foreign_Holdings

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Government Security Yields

3-Month Selected LCY Government Security Yields

10-Year Selected LCY Government Bond Yields

Close of 22 June 2012

Close of 22 June 2012

EU = European Union, LCY =local currency, PRC = People’s Republic of China, US = United States. Source: Based on data from Bloomberg, LP.

PreviousDay*

PreviousWeek* 1-Jan-12*

US 0.08 0.00 -0.99 6.61EU 0.02 0.00 -4.00 8.50Japan 0.10 0.00 0.00 0.00PRC 2.09 0.00 1.00 -68.00Hong Kong, China 0.08 0.00 -1.00 -14.00India 8.27 -1.00 17.00 -25.00Korea, Rep. of 3.28 -1.00 1.00 -8.00Malaysia 3.03 -0.10 -0.10 3.60Philippines 2.20 0.00 0.20 82.50Singapore 0.27 0.00 0.00 -10.00Thailand 3.02 -0.29 -0.08 -10.58

basis point change fromLatest ClosingMarkets

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US 1.67 5.80 9.69 -20.20EU 1.58 4.70 14.40 -24.80Japan 0.83 0.80 -2.30 -15.80PRC 3.41 0.00 1.00 -3.00Hong Kong, China 0.99 -0.80 -5.40 -48.00India 8.08 2.60 3.20 -48.30Indonesia 6.20 5.50 -17.30 17.30Korea, Rep. of 3.64 -2.00 0.00 -15.00Malaysia 3.52 -0.40 0.40 -17.70Philippines 5.34 1.32 -5.62 25.46Singapore 1.46 0.00 5.00 -17.00Thailand 3.49 -1.70 -0.30 20.50Viet Nam 10.08 2.50 10.80 -241.70

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Tip: Zoom-in on the table using the Acrobat zoom tool Benchmark Yield Curves – LCY Government Bonds

Indonesia

EU = European Union, LCY = local currency US = United States. Source: Based on data from Bloomberg.

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Tip: Zoom-in on the table using the Acrobat zoom tool 2- versus 10- Year Yield Spread Chart

EU = European Union, US = United States. Source: Based on data from Bloomberg LP.

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Tip: Zoom-in on the table using the Acrobat zoom tool Policy Rate versus Inflation Rate

Philippines Thailand

China, People’s Rep. of Hong Kong, China India

The PRC uses the 1-year lending rate as one of its policy rates. Source: Bloomberg LP.

The Hong Kong Monetary Authority maintains a Discount Window Base Rate. Source: Bloomberg LP.

The Reserve Bank of India uses the repurchase (repo) cut-off yield as its policy rate. Source: Bloomberg LP.

Indonesia Korea, Republic of Malaysia

Bank Indonesia uses its reference interest rate (BI rate) as its policy rate. Source: Bloomberg LP.

The Bank of Korea shifted its policy rate from the overnight repurchase (repo) rate to the 7-day repo rate in March 2008. Source: Bloomberg LP.

Bank Negara Malaysia uses the overnight policy rate (OPR) as its policy rate. Source: Bloomberg LP.

Viet Nam

Bangko Sentral uses the Philippine overnight reverse repurchase agreement rate as one of its policy instruments. Source: Bloomberg LP.

The Bank of Thailand replaced the 14-day repurchase rate with the 1-day repurchase rate in January 2007 as its policy rate. Source: Bloomberg LP.

The State Bank of Viet Nam uses a benchmark prime lending rate as its policy rate. Source: Bloomberg LP.

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Tip: Zoom-in on the table using the Acrobat zoom tool Credit Default Swap Spreads and Exchange Rate Indexes

Credit Default Swap Spreads — Senior 5-Year*

Exchange Rate Indexes (vis-à-vis US$, 2 January 2007=100)

* In US$ and based on sovereign bonds Source: Thomson Reuters

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Debt Security Issuances (18 – 22 June 2012)

CN 10-year Treasury Bond 3.96 30.00 30.00HK 91-day Exchange Fund Bills 0.09 29.57 29.57

354-day Exchange Fund Bills 0.15 3.00 3.00ID 19-Jun 3-month Treasury Bills 3.90 5,000.00 500.00

1-year Treasury Bills 4.33 1,150.0010-year Treasury Bonds 6.39 950.0015-year Treasury Bonds 6.74 1,600.0020-year Treasury Bonds 7.14 2,650.00

JP 18-Jun 1-year Treasury Discount Bills 0.10 2,500.00 2,499.8521-Jun 3-month Treasury Discount Bills 0.10 5,700.00 5,739.76

KR 18-Jun 91-day Monetary Stabilization Bonds 3.27 1,200.00 1,200.00182-day Monetary Stabilization Bonds 3.28 500.00 500.0010-year Treasury Bonds 3.68 3.75 1,750.00 1,750.00

MY 18-Jun 126-day BNM Islamic Notes 3.05 0.50 0.50182-day BNM Islamic Notes 3.04 0.50 0.50364-day BNM Notes 2.86 2.00 2.00

20-Jun 91-day BNM Islamic Notes 3.05 1.00 1.00168-day BNM Islamic Notes 3.05 0.50 0.50364-day BNM Notes 2.87 2.00 2.00364-day BNM Notes 2.97 0.50 0.50

PH 19-Jun 20-year Fixed Rate Treasury Notes 6.02 5.88 9.00 6.65SG 18-Jun 91-day Treasury Bills 0.17 4.00 4.00TH 19-Jun 28-day BOT Bills 2.87 25.00 25.00

91-day BOT Bills 3.00 25.00 25.00182-day BOT Bills 3.09 18.00 18.00

20-Jun 3.5-year Government Bonds 3.20 3.13 10.00 10.0015.5-year Government Bonds 3.85 3.58 9.00 9.00

BNM = Bank Negara Malaysia, BOT = Bank of Thailand, LCY = local currency.Sources: Local market sources and Bloomberg, LP.

C o u p o n (% )

A m o u n t O ffe r e d (L C Y billio n)

A m o u n t Is s u e d (L C Y billio n)M a r k e ts

A u c tio n D a te T y p e o f S e c u r ity

A v e r a g e Y ie ld (% )

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DEBT HIGHLIGHTSASIANBONDSONLINE

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Tip: Zoom-in on the table using the Acrobat zoom tool Selected Asia Data Releases (26 June – 2 July 2012)

Source: AsianBondsOnline , Bloomberg LP, and Reuters.

06/29 04/11: −34605/11: −67603/12: −1,52204/12: −1,516

ThailandCurrent AccountUS$ millionMAY

MalaysiaM3 Money Supplyy-o-y, %MAY

The current account surplus of the Republic of Korea narrow ed to US$1.8 billion in April from US$3.0 billion in March.

Republic of KoreaCurrent AccountUS$ millionMAY

06/29 04/11: –0.4%05/11: –0.4%03/12: 0.5%04/12: 0.4%

JapanCPIy-o-y, %MAY

Consumer price inf lation in Japan remained relatively stable in March and April at 0.5% and 0.4% y-o-y, respectively.

06/28 05/11: 2,183.906/11: 2,030.703/12: 2,971.404/12: 1,776.6

06/29 04/11: 10.14%05/11: 11.46%03/12: 14.99%04/12: 14.96%

Malaysia’s M3 money supply grew 14.96% y-o-y in April, marginally low er than the 14.99% grow th recorded in March.

Thailand recorded a current account deficit for the second consecutive month in April, amounting to US$1.5 billion.

R e le a s e D a te R e c e n t T r e n d sE c o n o m y a n d V a r ia b le H is to r ic a l D a ta

Singapore’s industrial production fell slightly by 0.3% y-o-y in April, an improvement from the 3.1% decline registered in March.

SingaporeIndustrial Productiony-o-y, %MAY

06/26 04/11: –7.0%05/11: –14.9%03/12: –3.1%04/12: –0.3%

Exports from Hong Kong, China increased 5.6% year-on-year (y-o-y) in April after contracting 6.8% in March.

The Philippines’ trade deficit grew to US$1.05 billion in March from US$566 million in February as exports slumped amid the global economic slow dow n and eurozone crisis.

Hong Kong, ChinaExportsy-o-y, %MAY

06/26 04/11: 4.1%05/11: 10.1%03/12: −6.8%04/12: 5.6%03/11: –1,19604/11: –1,21902/12: –56603/12: –1,049

06/26PhilippinesTrade BalanceUS$ millionAPR

The People’s Republic of China’s (PRC) purchasing managers’ index (PMI) for the manufacturing sector fell to 50.4 in May from 53.3 in April.

05/11: 52.006/11: 50.904/12: 53.305/12: 50.4

People’s Republic of ChinaPMI ManufacturingIndexJUN

07/01

IndonesiaCPIy-o-y, %JUN

07/02 05/11: 5.98%06/11: 5.54%04/12: 4.50%05/12: 4.45%

Consumer price inf lation in Indonesia eased slightly in May to 4.45% y-o-y from 4.50% in April.

ThailandCPIy-o-y, %JUN

07/02 05/11: 4.19%06/11: 4.06%04/12: 2.47%05/12: 2.53%

Thailand’s consumer prices rose 2.53% y-o-y in May after climbing 2.47% in April.

IndonesiaExportsy-o-y, %MAY

07/02 04/11: 37.5%05/11: 44.9%03/12: 5.4%04/12: −3.5%

Exports from Indonesia dropped 3.5% y-o-y in April, after posting revised 5.4% annual grow th in March.

Republic of KoreaCPIy-o-y, %JUN

07/02 05/11: 3.9%06/11: 4.2%04/12: 2.5%05/12: 2.5%

Consumer price inf lation in the Republic of Korea stood at 2.5% y-o-y in May, the same rate as in the previous month.

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DEBT HIGHLIGHTSASIANBONDSONLINE

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News Articles: Sources for Further Reading

HKMA, Euroclear Bank, and J.P. Morgan Launch Cross-Border Collateral Management Service

• Hong Kong Monetary Authority, Euroclear Bank and J.P. Morgan Open Cross-border Liquidity and Secured Lending Channels in Hong Kong

Hong Kong Monetary Authority Euroclear Bank J.P. Morgan Worldwide Securities Services (12 June 2012)

Consumer Price Inflation Moderates in Hong Kong, China and Malaysia in May and in Viet Nam in June

• Consumer Price Indices for May 2012 Census and Statistics Department (21 June 2012)

• Consumer Price Index Malaysia May 2012 Department of Statistics Malaysia (22 June 2012)

• Viet Nam June Annual Inflation at 6.9 pct y/y – govt Reuters (23 June 2012)

Discount Chain Sales Fall and Department Store Sales Rise in the Republic of Korea in May; Car Sales Improve in Thailand in May

• Retail Sales Figures for May Ministry of Knowledge Economy (20 June 2012)

• Car Exports, TISI and Public Debt Up in May Bangkok Post (20 June 2012)

LCY Corporate Bond Issuance Falls 20% m-o-m in the Republic of Korea in May; Thailand Allows Five Foreign Entities to Issue THB-Denominated Bonds

• Direct Corporate Financing in May 2012 Financial Supervisory Service (21 June 2012)

• Permission to Issue Baht-denominated Bonds or Debentures by Foreign Entities in Thailand during May 1, 2012 – January 31, 2013 Ministry of Finance (19 June 2012)

Fitch Affirms Issuer Default Ratings for the Philippines; Moody’s Reports on Singapore’s Economy Strength and Resiliency to Global Economic Shocks

• Fitch Affirms the Philippines at ‘BB+’/’BBB-‘; Outlook Stable Fitch Ratings (19 June 2011)

• Moody’s: Singapore’s Economy Strong, Resilient to Global Shocks Moody’s Investor Service (19 June 2011)

Hong Kong, China Sells HKD10 Billion Inflation-Linked Retail Bond; Bank Permata Sells IDR700 Billion 7-Year Subordinated Bond; Medco Energi Internasional Issues IDR1.5 Trillion 5-Year Bond; Indomobil Wanana Trada Raises IDR599 Billion from Triple-Tranche Bond Sale; Hong Leong Bank Sells MYR1.5 Billion 12-Year Senior Subordinated Note; PTPTN Issues MYR2.5 Billion 10-Year Sukuk; SMIC to Sell PHP10 Billion Bond; HDB Issues SGD500 Million 7-Year Fixed Rates Note

• Government Announces Subscription and Allocation Results of iBond

Hong Kong Monetary Authority (20 June 2012)

• Bank Permata Raises Rp 700 Billion From Sale of Subordinated Debt

Jakarta Globe (20 June 2012)

• Listing of Bond Medco Energi Internasional III Year 2012 With Fixed Interest Rate on June 20 2012

Indonesia Stock Exchange (19 June 2012)

• Listing of Bond Indomobil Wahana Trada I Year 2012 With Fixed Interest Rate on June 20 2012

Indonesia Stock Exchange (19 June 2012)

• HLB Enlarges Sub Debt IFR Asia (13 June 2012)

• PTPTN Pays Higher Premium IFR Asia (16 June 2012)

• HDB Issues Fixed Rate Notes Housing & Development Board (18 June 2012)

Korea Exchange Bank Prices US$700 Million 5-Year Bond; IOI Corporation Prices US$600 Million 10-Year Bond; Hang Lung Properties Prices US$500 Million 10-Year Bond; First Pacific Company Sells US$400 Million 7-Year Bond; UPS Raises CNH630 Million from Dual-Tranche Commercial Paper Sale; Veolia Environment Prices CNH500 Million 5-Year Bond

• BONDS: KEB Reveals Hunger for Asian Risk as Greek Rally Fades

IFRAsia (19 June 2012)

• Pricing of US$600 Million 4.375% Guaranteed Senior Notes Due 2022

Bursa Malaysia (22 June 2012)

• BONDS: Hang Lung Debut Shows Rating Not Required IFR Asia (19 June 2012)

• First Pacific Places US$400 Mln Bond Issue First Pacific Company (22 June 2012)

• BONDS: First Pacific Blowout Paves Way for Lower-rated Credits

First Pacific Company (22 June 2012)

• BONDS: UPS First Non-financial Issuer to Sell Dim Sum CP

IFR Asia (18 June 2012)

• BONDS: Veolia Goes for Tight and Long Dim Sum IFR Asia (22 June 2012)

Foreign Ownership of Japanese Government Bonds Increases at end-March

• Foreign Ownership of Japanese Debt at 8.3% Japan Times (20 June 2012)

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