Emerging Asian bonds are becoming more expensive, potentially reducing their appeal compared to global counterparts if President Trump's tariff policies are less severe than expected.

Recent data compiled by Bloomberg suggests that yield spreads for bonds from South Korea, the Philippines, India, China, Malaysia, and Indonesia are trading below their average over the past year, indicating a higher valuation relative to other emerging markets like Colombia and Mexico.

This change in bond valuation suggests that investors may need to reconsider their strategies in light of changing tariff dynamics, as the attractiveness of Asian bonds could decrease if they continue to trade at elevated levels.

The evolving landscape of international trade policies is likely to impact market sentiment and investment decisions in the coming weeks.