Weak bond auctions in Southeast Asia seen as buying chance for funds

Fund managers including Western Asset Management and Aberdeen Investments say weak demand at recent Southeast Asian government bond auctions is creating entry points, citing resilient domestic demand and strong fundamentals. Malaysia's 2046 note sale at end-August drew its second-lowest bid-to-cover this year, while Thai, Philippine and Indonesian auctions also saw weak demand. Yields have climbed across the region on global rates, oil above $100 a barrel and expectations of a Bank Negara Malaysia rate hike.