Central banks cultivate Asian bond markets

ASIAN SAVINGS FOR Asian investments is the battle cry around the region. Boosting national Asian bond markets - and even creating a pan-Asian bond market - is the goal. At least that's the line the region's central bankers are pushing.

Talk of regional cooperation in Asia is hardly new, nor is the concept of an Asian bond market. Up until now achievements have been sparse and private-sector bankers bemoan the relatively weak regional financial infrastructure.

Yet Asian central bankers are now blazing the trail. They are sitting on $1.3 trillion of the world's foreign exchange reserves - of which more than half is invested in US treasuries and European government bonds. Their ambitious plans focus on keeping more of this money in the region.

What would this mean? For Asia, greater financial integration would make the region more self-sufficient and channel funds into much-needed infrastructure projects. Ultimately, if successful, the...