 Overview: April saw an extension and worsening of last month’s losses, amid  heavy foreign investor retrenchment from all Asian asset classes. Anxiety around the Asian growth outlook intensified on account of China lockdowns,  regional FX was left de-anchored by violent CNY weakness that looks likely to  continue absent much stronger/more decisive PBoC resistance, and bonds  continued to suffer as tightening expectations ratcheted higher amid upside  inflation surprises. While nominal yields have surged across the region in  sympathy with global trends, real terminal rates are still shallow and have  distance to travel simply to catch up to 2018 cycle highs; odds are that hotter  inflation this time around will require more restrictive pricing than back then. 

Bonds are also far from distressed valuations to interest medium/long-term  contrarian investors; tighter CBs, a stronger dollar and unfavorable demand  supply dynamics imply more pain is likely in store.