Waning demand at recent debt sales suggests next quarter is going to be a difficult one for Southeast Asian bonds. Bidding at Indonesian and Malaysian auctions has fallen to the lowest levels in at least five months, while the Philippine government rejected all bids at two offerings over the past month as investors sought higher yields than the nation was prepared to pay. Only Thailand has bucked the trend, with fears over a resurgence in Covid infections boosting haven demand. There are plenty of factors contributing to the worsening bond-sale metrics. These include speculation local investors are getting close to filling this year’s order books, signs the cycle of interest-rate cuts is nearing its end, the specter of debt monetisation, and the re-emergence of political risks (in Malaysia).