The upcoming round of tariffs by US President Donald Trump has led to a surge of activities in the credit market of the Asia Pacific region. Several entities are either marketing or announcing dollar bonds on Monday. Some notable mentions include Korea National Oil Corp., Petroliam Nasional Bhd, Posco Holdings Inc., Jollibee Foods Corp., and MTR Corp. Ltd., who are all finalizing bond deals.

Market players are making moves before the expected US tariff announcement on April 2, which Trump has labeled as “Liberation Day.” Despite investor jitters due to the potential tariff hikes, there have been some positive outcomes for bond issuers. With Treasury yields declining and tight investment-grade bond spreads in Asia, issuers are benefiting from reduced funding costs.

Mark Reade from Mizuho Securities Asia noted the active Asian dollar primary market, as multiple issuers are eager to secure funding before “Liberation Day.” In the Asia Pacific region, nearly $92 billion worth of dollar bonds have already been sold this quarter, marking the highest quarterly volume since early 2022.

Trump's reciprocal tariff strategy targets countries that impose levies on US goods. While the tariffs may be more focused than initially anticipated, the uncertainty surrounding Trump's actions has left investors in various markets on edge.