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EMERGING MARKETS-Asian bonds sold off as U.S. yields spike; Philippine stocks slump

    * Graphic: World FX rates tmsnrt.rs/2egbfVh
    * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3f2vwbA
    * Thailand 10-yr bond yield at highest since April 2020
    * Philippine stocks slip; COVID-19 deaths spike
    * South Korea's KOSPI reverses early gains, won slips

    By Rashmi Ashok
    Feb 22 (Reuters) - Most Asian bond yields pushed higher on
Monday against the backdrop of a spike in U.S. 10-year Treasury
yields on expectations that massive government stimulus would
lead to higher economic growth and inflation.
    Regional equities, however, posted a mixed performance, with
the Philippines market slipping most as a jump in COVID-19
casualties raised the possibility that partial lockdown measures
in the capital of Manila could be extended.
    Yields on benchmark U.S. 10-year Treasury notes
rose to a one-year high of 1.3822%, as falling COVID-19
infection rates, expectations of a stronger economic recovery
and higher government borrowing in the United States dented
their lustre.
    The move sparked outflows in Indonesian 10-year bonds
, generally favoured as a high-yield investment in
the region, with yields rising to 6.673%, their highest since
mid-October. 
    "With Bank Indonesia's easing cycle coming to an end, bond
supply/ demand dynamics challenging, and our expectation for
U.S. yields to rise, we think the scope for IDR bonds to rally
significantly is limited," analysts at Goldman Sachs wrote.
    "As such, we recommend investors lighten duration risk and
switch from 10Y and 20Y into the 5Y sector of the curve."
    Thailand 10-year bond yields jumped to 1.570%,
hitting their highest since early April last year, while India's
benchmark bond yields hit their highest since
late-August at 6.195%.
    Malaysian benchmark bond yields were an
exception, holding relatively steady at 2.956%, although they
too have risen recently.
    Analysts at HSBC said they favour Malaysian bond markets,
noting it has the highest real policy rate in emerging markets,
a status that is increasingly inconsistent with the country’s
growth and inflation outlook. 
    The Philippines stock market slipped 1.1%, while its
currency, the peso, shed as much as 0.3% to hit its
lowest since Oct. 23.
    The Philippines reported 239 new coronavirus deaths on
Saturday, the second-highest daily increase in casualties since
the beginning of the pandemic.
    President Rodrigo Duterte is due to decide next week on the
future of coronavirus restrictions in Manila, which accounts for
a significant chunk of the country's economic output.
    South Korea's KOSPI reversed early gains to edge
lower while the won also eased, despite upbeat export
data.
    Doctors in South Korea have threatened strike action in
response to legislation to strip them of licences following
criminal convictions, sparking fears about possible disruption
of a coronavirus vaccination effort set to begin this week.

    
    HIGHLIGHTS:
    ** Indonesian 3-year benchmark yields were down 3.9 basis
points at 5.169%​​ while Thailand's 3-year benchmark yield is up
3 basis points at 0.62%​​ 
    ** In the Philippines, top index losers are Ayala Corp
 down 3.14% and SM Investments Corp down 2.72% 
    ** Top gainers on the Singapore STI include Singapore
Technologies Engineering Ltd up 1.6% and Singapore
Airlines Ltd up 1.15% 
    
   
  Asia stock indexes and                              
 currencies at   0449 GMT                        
 COUNTRY  FX RIC        FX     FX  INDE  STOCKS  STOCK
                     DAILY  YTD %     X   DAILY  S YTD
                         %                    %      %
 Japan               -0.20  -2.27  <.N2    0.86  10.32
                                   25>           
 China    <CNY=CFX   -0.04  +1.02  <.SS   -0.06   6.36
          S>                       EC>           
 India               +0.14  +0.71  <.NS   -0.35   6.78
                                   EI>           
 Indones             -0.28  -0.43  <.JK    1.10   5.37
 ia                                SE>           
 Malaysi             +0.00  -0.45  <.KL   -0.26  -2.85
 a                                 SE>           
 Philipp             -0.25  -1.21  <.PS   -1.23  -4.18
 ines                              I>            
 S.Korea  <KRW=KFT   -0.14  -1.91  <.KS   -0.30   7.83
          C>                       11>           
 Singapo             +0.10  -0.15  <.ST    0.26   1.56
 re                                I>            
 Taiwan              +1.52  +2.04  <.TW    0.86  11.87
                                   II>           
 Thailan             -0.10  -0.13  <.SE   -0.42   3.09
 d                                 TI>           
 





















  
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