Higher Oil Prices May Spur Quicker Yield Gains in Emerging Asia

Higher-for-longer oil prices threaten a faster rise in emerging Asian bond yields, if history is any guide — a risk market watchers say isn’t yet fully priced in.

The vulnerability of regional bonds to oil price shocks could intensify over time, a Bloomberg analysis of previous four scenarios since 2017 shows. Average 10-year yields in the region may climb 16 basis points for every 10% increase in Brent oil prices as the Iran conflict enters the third month, the study shows.