FTSE Russell has launched the FTSE Asia Pacific Liquid Government Bond Index Series, a new suite of benchmarks designed to measure the performance of liquid government bonds across the Asia-Pacific region.

The index series comprises local-currency-denominated benchmarks that track recently issued or reopened government bonds within each tenor and country. These bonds are selected from the broader FTSE Asia Pacific Government Bond ( APGBI ) Index, ensuring transparency and consistency in methodology.

Initially, the FTSE Asia Pacific Liquid Government Bond Index Series will cover five key markets – India, Indonesia, Malaysia, the Philippines and Thailand – and three key tenors – three, five and 10 years.

The index series is designed to support the development of exchange-traded and over-the-counter risk-management tools, providing a transparent and standardized foundation for potential derivatives and investment products linked to government bond markets in the region, FTSE Russell says.

It will also serve as the benchmark for the Asia Pacific Government Bond Futures to be listed on Singapore Exchange, offering investors instruments to manage exposure across key maturities. 

The series starts from the base universe of the FTSE Asia Pacific Government Bond Index. Non-conventional bonds are excluded, including green bonds, social bonds, sustainability bonds, special bonds, retail bonds, savings bonds, and sukuk bonds. After this screening, the two or three most recently issued or reopened bonds within each country and tenor sector are selected and equally weighted.

“By focusing on liquidity and standardization, this new series enables market participants to better track performance, manage risk, and access new opportunities in Asia’s fast-growing fixed income markets," says Scott Harman, global head of fixed income, currencies and commodities ( FICC ), at FTSE Russell.

William Chin, head of rates and derivatives at SGX Group, adds: “Asia’s government bond markets are entering investor playbooks as a core allocation in global fixed income portfolios. As participation broadens, the need for liquid, investable benchmarks that enable price transparency and efficient risk transfer becomes critical. The successful launch of the FTSE Asia Pacific Liquid Government Bond index series is a key building block in advancing the region’s capital markets and development of robust risk management solutions.”