FTSE Russell has launched the FTSE Asia Pacific Liquid Government Bond Index Series, a new suite of benchmarks aimed at measuring the performance of liquid government bonds across the Asia-Pacific region. This initiative targets five key markets—India, Indonesia, Malaysia, Philippines, and Thailand—focusing on three, five, and 10-year tenors.
The index series is designed to bolster the development of exchange-traded and over-the-counter (OTC) risk-management tools. It provides a transparent and standardised foundation for potential derivatives and investment products linked to Asia Pacific government bond markets. Additionally, it will serve as the benchmark for the Asia Pacific Government Bond Futures to be listed on the Singapore Exchange (SGX), offering investors instruments to manage exposure across key maturities.
Scott Harman, Global Head of Fixed Income, Currencies and Commodities at FTSE Russell, emphasised the importance of the launch, stating, “Today’s launch underscores our commitment to providing transparent, robust benchmarks that meet the evolving needs of global investors.”
William Chin, Head of Rates, Derivatives at SGX Group, highlighted the significance of the new index series, noting that Asia’s government bond markets are becoming a core allocation in global fixed income portfolios. “The successful launch of the FTSE Asia Pacific Liquid Government Bond index series is a key building block in advancing the region’s capital markets,” he said.
The index excludes non-conventional bonds such as green, social, and sukuk bonds, focusing instead on the most recently issued or reopened bonds within each country and tenor sector. This approach ensures transparency and consistency in methodology, aligning with the broader FTSE Asia Pacific Government Bond Index.
