Hanoi, Sept. 27 -- The improvement of global investment sentiment and financial conditions has provided a much-needed lift for local currency bond markets in emerging East Asia, including Vietnam, despite risks from the COVID-19 pandemic, according to the latest issue of the Asian Development Bank's (ADB) Asia Bond Monitor.

Government bond yields in most emerging East Asian markets declined from June 15 to September 11 on the back of accommodative monetary policies and weakening growth across the region. Meanwhile, improving sentiment has led to gains in equity markets and a narrowing of credit spreads, with most regional currencies strengthening against the dollar.

Local currency bonds outstanding in emerging East Asia reached 17.2 tri...