Long-term bond yields declined and yield curves flattened in emerging East Asia on a dimming economic outlook.1 Despite continued inflationary pressure and accelerated monetary tightening, a moderating growth outlook and mounting downside risks contributed to declining yields on 10-year local currency (LCY) government bonds and flattening yield curves, as proxied by narrowing spreads between 10-year and 2-year bond yields between 15 June and 24 August. Regional currencies also collectively depreciated against the United States (US) dollar by an average of 1.8% (simple) and 2.1% (gross-domestic-product-weighted) during the review period. Short-term bond yields rose in a few markets as central banks accelerated monetary tightening to tame inflation and safeguard financial stability.