Slow East Asian bond market integration requires urgent government intervention.
The research looked at how well East Asian government bond markets are working together. They used different methods to see if the markets are getting more connected. The study found that while the bond markets in East Asia have become more integrated since 2001, there are still big differences between them. The process of bringing the markets together seems to be slow. However, the bond markets started to come together faster in 2003 and after the 2008 world financial crisis. This suggests that government policies play a big role in making the regional bond markets work better together. More government actions might be needed to improve East Asian bond market integration.