60 seconds with Rajeev de Mello: Asian bond boost from falling inflation
Falling inflation boosts Asian bond outlook
Our outlook for Asia in 2015 is one where generally bonds yields will continue to fall, so bond returns are going to be positive.
Inflation is going to be much lower, due to falling oil prices. That is positive for bonds because declining inflation usually leads to central bankers cutting interest rates.
Indeed, if we look at countries like India we have seen inflation rates reach levels that we haven't seen in decades.
Asian currencies resilient to dollar strength
There is concern on the currency side about the strengthening US dollar.
Generally Asian currencies have done well despite this, and in euro or sterling terms Asian currencies look interesting.
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