Feb 22 (Reuters) - Most Asian bond yields flitted higher on
Monday, tracking a spike in U.S. 10-year Treasury yields on
expectations that massive government stimulus would lead to
higher economic growth and inflation.
    Regional equities were largely weak, with the Philippines
market slipping the most as a jump in COVID-19 casualties raised
the possibility that partial lockdown measures in the capital of
Manila could be extended.
    Yields on the benchmark U.S. 10-year Treasury notes
 rose to a one-year high, as falling infection rates,
expectations of a stronger economic recovery and higher
government borrowing in the United States dented their lustre.
    The move sparked outflows in Indonesian 10-year bonds
, generally favoured as a high-yield investment in
the region, with yields rising to 6.708% — the highest since
mid-October.
    Thailand's 10-year bond yields jumped to 1.580%,
hitting their highest since early-April last year, while India's
benchmark bond yields hit their highest since
late-August at 6.212%.
    Malaysian benchmark bond yields were an
exception, rising only marginally higher to 2.969%. The yields
had strengthened in the previous two sessions.
    "Local 10-year and longer-dated government bonds have
steepened significantly in recent trading sessions, but the
correlation and magnitude are likely to be lesser, going
forward, given Malaysia's dovish Overnight Policy Rate outlook
and increasingly attractive valuation," said Ahmad Najib Nazlan,
CEO of Maybank Asset Management.
    "We have noticed some local support at current attractive
levels and the ample local liquidity condition should limit
major sell off, going forward." 
    Nazlan added that they expected decent participation from
foreign investors on expectations of a continued weakening trend
in the dollar.
    The Philippines reported 239 new coronavirus deaths on
Saturday, the second-highest daily increase in casualties since
the beginning of the pandemic, sending equities down
1.7%, while the peso hit its lowest since Oct. 19. 
    "I think the market is definitely on the edge due to the big
decision later tonight, with the question on whether government
authorities will be relaxing lockdown measures further," said
Nicholas Mapa, senior economist for Philippines at ING. 
    "Recent COVID-19 infections have nudged up ahead of the big
decision which may have spooked foreign investors, with heavy
selling by foreign players," he said, adding that the foreign
outflows had caused the currency weakness.
    South Korea's KOSPI reversed early gains to end
lower, while the won eased despite upbeat export
data.
    Doctors in South Korea have threatened strike action in
response to legislation to strip them of licences following
criminal convictions, sparking fears about possible disruption
of a coronavirus vaccination effort set to begin this week.

    
    HIGHLIGHTS
    ** Top losers on Thailand's SETI include Group Lease
PCL down 17.19% and Taokaenoi Food & Marketing PCL
 down 14.29% 
    ** Top gainers on the Jakarta stock index include
Yelooo Integra Datanet Tbk PT up 34% and Intermedia
Capital Tbk PT up 20.75%
    ** Malaysia's 10-year benchmark yield is up 2.6 basis points
at 2.969%​​ while the 3-year benchmark yield is down 0.2 basis
points at 1.921%​​ 
    
    
    
    
    
  Asia stock indexes and                              
 currencies at   0721 GMT                        
 COUNTRY  FX RIC        FX     FX  INDE  STOCKS  STOCK
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               -0.26  -2.33  <.N2    0.46   9.88
                                   25>           
 China    <CNY=CFX   -0.11  +0.95  <.SS   -1.45   4.88
          S>                       EC>           
 India               +0.30  +0.88  <.NS   -1.24   5.82
                                   EI>           
 Indones             -0.28  -0.43  <.JK    0.83   5.09
 ia                                SE>           
 Malaysi             -0.05  -0.50  <.KL   -0.40  -2.98
 a                                 SE>           
 Philipp             -0.33  -1.30  <.PS   -1.68  -4.61
 ines                              I>            
 S.Korea  <KRW=KFT   -0.41  -2.18  <.KS   -0.90   7.18
          C>                       11>           
 Singapo             -0.08  -0.33  <.ST    0.38   1.68
 re                                I>            
 Taiwan              +1.53  +2.05  <.TW    0.42  11.39
                                   II>           
 Thailan             -0.17  -0.20  <.SE   -0.30   3.22
 d                                 TI>           

SOURCE : https://www.reuters.com/article/emerging-markets-asia/emerging-markets-asian-bonds-see-outflows-on-u-s-yield-spike-philippine-shares-drop-idUSL4N2KS1WP