Foreign Participation in Emerging Markets’ Local Currency Bond Markets

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 go...

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Bibliographic Details
Main Author: Peiris, Shanaka
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2010
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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651 4 |a Turkey 
653 |a Interest rates 
653 |a Government and the Monetary System 
653 |a Sovereign bonds 
653 |a Payment Systems 
653 |a Finance 
653 |a Monetary economics 
653 |a Regimes 
653 |a Financial institutions 
653 |a Financial services 
653 |a Saving and Capital Investment 
653 |a General Financial Markets: Government Policy and Regulation 
653 |a Debt Management 
653 |a Capital market 
653 |a Bond yields 
653 |a Debt 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a Investments: Bonds 
653 |a Economic Development: Financial Markets 
653 |a Yield curve 
653 |a Money 
653 |a Sovereign Debt 
653 |a Standards 
653 |a Financial markets 
653 |a Bonds 
653 |a Banks and Banking 
653 |a Currencies 
653 |a Monetary Systems 
653 |a Financial Markets and the Macroeconomy 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Investment & securities 
653 |a Money and Monetary Policy 
653 |a Finance: General 
653 |a Corporate Finance and Governance 
653 |a Securities markets 
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520 |a 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