ABSTRACT
The bond markets of developing East Asia have become more active in the 1990s, following the liberalization of financial markets in many East Asian countries in the 1980s. Much of the growth measured in absolute terms has occurred in Korea and in Singapore's Asian dollar bond market, but on a percentage basis, growth has been relatively high in recent years in most of the other East Asian developing countries. One of the main factors hindering the development of an active and viable bond market is when the issuer of bonds, usually the government has a captive market for the securities. One of the most important measures that a country, such as Thailand, can take to develop an active and viable bond market is to establish an auction system for government securities that reflects true market forces. A major drawback of some bond dealing systems in developing East Asia is the lack of a proper information system.
