Geopolitical challenges have fuelled inflation and, combined with the US Federal Reserve’s rapid rate hikes, have brought volatility to capital markets globally. Debt markets have experienced a drop-off in G3 bond issuance, but Asia’s local currency markets have earned their place as a safe haven. G3 volumes from Asia ex-Japan dropped 35% for the first half of 2022 compared to the same period last year, according to Refinitiv data. Asia’s local currency markets, though, have st