I. Introduction 1

II. Regional Initiatives for Bond Market Development in Asia 3

1. Asian Bond Markets Initiative: Supply Side

2. Asian Bond Funds (ABFs): Demand Side

III. Current Situation of Bond Markets in Asia 12

1. Small Domestic and Regional Bond Markets

2. Savings’Circulation and Portfolio Investment in Asia

IV. Challenges to Developing Bond Markets in Asia 20

1. Impediments to Domestic Bond Market Development

2. Impediments to Regional Bond Market Development

V. A Way Forward for Development of Bond Markets in Asia 23

1. Overall Direction for Bond Market Development in Asia

2. Efforts to Develop Domestic Bond Markets in Asia

3. Efforts to Develop a Regional Asian Bond Market

VI. Summary and Conclusion 32

References