Advanced Search
MyIDEAS: Login to save this paper or follow this series

Foreign Participation in Emerging Markets’ Local Currency Bond Markets


Author Info

  • Shanaka J. Peiris
Registered author(s):


    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.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 10/88.

    as in new window
    Length: 20
    Date of creation: 01 Apr 2010
    Date of revision:
    Handle: RePEc:imf:imfwpa:10/88

    Contact details of provider:
    Postal: International Monetary Fund, Washington, DC USA
    Phone: (202) 623-7000
    Fax: (202) 623-4661
    Web page:
    More information through EDIRC

    Order Information:

    Related research

    Keywords: Capital inflows; Foreign investment; bond; bond yields; bond markets; government bond; government bond yields; bond market; government bond markets; bonds; bond yield; government bond market; domestic bond markets; domestic bond; domestic government bond; domestic bond market; local currency bond; bond yield volatility; international financial statistics; government bonds; financial stability; domestic bonds; local bond; corporate bond; government bond yield; government securities; local bond markets; corporate bond markets; capital markets; hedge funds; local currency bond markets; bond prices; risk aversion; rate bonds; current account balance; capital flows; debt securities; mature markets; bond funds; dollar bonds; financial economics; corporate bonds; bond market developments; sovereign bond; hedge; derivative markets; development of bond markets; international bonds; bond issuance; bond price; bond turnover; bond market development; equity markets; financial markets; treasury bond; global bond; option pricing; derivative; capital controls; derivatives markets; financial system; domestic bond market developments; long-term bond yields; term bond; denominated bond; capital loss; developing government bond; securities markets; sovereign bond market; securities ? markets; asset bubbles; local currency bond market; financial institutions; sovereign bond markets; developing government bond markets; international reserves; currency of denomination; stock adjustment; international finance; stock of debt; financial market; development of corporate bond markets; local bond market; domestic government bonds; treasury bond yield; financial fragility; currency risk; current account deficit;

    This paper has been announced in the following NEP Reports:


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Christian Ebeke & Yinqiu Lu, 2014. "Emerging Market Local Currency Bond Yields and Foreign Holdings in the Post-Lehman Period - a Fortune or Misfortune?," IMF Working Papers 14/29, International Monetary Fund.
    2. Jaramillo, Laura & Weber, Anke, 2013. "Bond yields in emerging economies: It matters what state you are in," Emerging Markets Review, Elsevier, Elsevier, vol. 17(C), pages 169-185.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:10/88. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.