Asian central banks map out new bond fund

TOKYO: Asian central banks announced yesterday a framework for a new fund to invest in local currency bonds with a view to enhancing the bond markets in the region. 

Asian Bond Fund 2 (ABF2) will be the second phase of the Asian Bond Fund, a US$1bil vehicle launched last June by 11 central banks in the East Asian and Pacific region, which pooled some of their foreign reserves to buy dollar-denominated bonds issued by Asian governments and agencies.