Is there an Asian local bond bubble?

The Asian Development Bank (ADB) dismisses the notion that an Asian local-currency bond bubble is forming, as increasing flows to the asset class continue to push down yields. Yet Raymond Chan, Allianz Global Investors' Asia-Pacific CIO, takes the opposite view. The region continues to attract net inflows into the asset class, with the outstanding LC bond market expanding to $6.2 trillion, or 3.5%, in the third quarter, according to the Manila-based bank’s latest Asia bond monitor…