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Asian bonds drew renewed foreign inflows in April after a month of selling, as a fragile Middle East ceasefire agreement briefly eased fears of a prolonged stagflation.
Foreigners bought a net $4.28 billion of local bonds in Indonesia, Malaysia, South Korea, Thailand and India, partly reversing the prior month's $7.57 billion in outflows, data from local regulators and bond market associations showed.
A fresh U.S. military strike on Iran on Wednesday, and reports of missile attacks in Kuwait challenged the optimism surrounding peace talks and a ceasefire that took effect in early April.
Indonesia led inflows, with foreigners purchasing about $3.1 billion worth of Indonesian bonds last month, after $1.8 billion of net sales in March.
"Most of the inflows were in SRBIs (short-term, IDR-denominated monetary instruments issued by the central bank) after Bank Indonesia pushed the yields higher," said Khoon Goh, head of Asia research at ANZ.
Malaysian bonds witnessed a second successive monthly foreign inflow of about $956.79 million.
"Investors see the country (Malaysia) as one of the most resilient in the region in the face of high energy prices," ANZ's Goh said.
South Korean and Thai bond markets attracted cross-border inflows of $700 million and $349 million, respectively.
Foreigners, however, pulled $826 million from Indian debt securities on caution over the impact of high oil prices on the country’s inflation, growth and external position.
(Reporting by Gaurav Dogra; Editing by Eileen Soreng)





















