US long-end rates have been consolidating for about a month now, but foreign buying in Asia bonds remains highly selective. It is notable that incremental foreign flows have gone into countries where bonds have sold off significantly, such as in Malaysia and Thailand. In relatively stable markets such as Indonesia and China, slight paring in foreign positioning was seen, leaving local participants to absorb more of the incoming bond supply. The bulk of supply pressure still lies ahead, with many countries in the region having completed just 25% or less of full-year net funding needs. This should keep yield curves steep, especially in countries with slower funding progress or weakness in domestic investors’ bond demand. India is one example and we recommend INR1yr1yr-5yr NDOIS steepener.