However, they say Asian bond markets in general are likely to weather the rising trade tensions with the US better than many expect.
With President Donald Trump expected to impose import taxes and raise tariffs, equity experts recommend companies and sectors to buy in the region – and some to avoid.
Watch out for a rising dollar, say fixed income fund managers, who believe the second half of 2017 will drive performance of debt in certain markets, in a reversal of what happened last year.
Being flexible and selective will be key to success in fixed income investment this year, say debt specialists. They tip high yield and, later in the year, emerging-market debt to do well.
In the first of a series of articles on the fixed income outlook for this year, fund managers say bond investors are not pricing sufficient inflation into their expectations.