(Bloomberg) -- Asian investment-grade dollar bonds are poised for their best monthly returns in a year, as investors bet central banks are close to ending their cycle of interest rate increases.
The Asian notes excluding Japan have returned 3.6% so far this month, the most since November of 2022, according to a Bloomberg index.
The strong showing is part of the global rally in fixed-income markets this month, propelled by mounting speculation the Federal Reserve and other major central banks have largely ended their policy tightening to clamp down on inflation.
Two Fed officials who led the push for higher rates last year this week signaled they could be comfortable holding rates steady for now.
Read more: Global Bonds Surge Toward Best Month Since 2008 Financial Crisis
Goldman Sachs Group Inc. analysts including Kenneth Ho wrote in a note earlier this month that they expect Asian investment-grade debt to return 6.7% next year, on the expectation the Fed’s next move is to cut rates in late 2024.
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