Cover IMF Working Papers
Foreign Participation in Emerging Markets’ Local Currency Bond Markets
Author: Mr. Shanaka J Peiris
Series:
IMF Working Papers
Volume/Issue:
Volume 2010: Issue 088
Language:
English
Publication Date:
01 Apr 2010
DOI:
https://doi.org/10.5089/9781451982602.001
ISBN:
9781451982602
ISSN:
1018-5941
Pages:
20
Keywords:
WP; bond market; bond yield; government bond; emerging market; Bond Markets; Emerging Market Economies; government bond bond market; government bond bond yield; yield volatility; bond market imbalance; yields in EMs; Bond yields; Sovereign bonds; Securities markets; Yield curve; Currencies; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper estimates the impact of foreign participation in determining long-term local currency government bond yields and volatility in a group of emerging markets from 2000-2009. The results of a panel data analysis of 10 emerging markets show that greater foreign participation in the domestic government bond market tends to significantly reduce long-term government yields. Moreover, greater foreign participation does not necessarily result in increased volatility in bond yields in emerging markets and, in fact, could even dampen volatility in some instances.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund