Asian Central Banks Turn to Bond Issuances to Defend Currencies Amid US Rate Hike Outflows

Asian central banks are using unconventional tools like bond issuances to defend currencies as US rate hikes spark outflows.

India is selling bonds to soak up cash and support the rupee, while Indonesia issued new debt to lure inflows.

China is selling record amounts of offshore yuan bonds to boost demand.

The measures help reduce foreign reserve drawdowns needed to defend currencies.

China's increased offshore yuan funding costs make its bonds less attractive to foreign investors who can't hedge.