This publication reviews recent developments in East Asian local currency (LCY) bond markets against a backdrop of deteriorating global financial conditions and provides an assessment of the outlook, risks, and policy options. Covering the Association of Southeast Asian Nations and the People's Republic of China; Hong Kong, China; and the Republic of Korea, it explains how growth in East Asia's LCY markets is slowing. It looks at whether regional trade integration leads to greater financial integration, analyzes the headwinds facing emerging economies, and explores how such economies can improve financial stability and buffer their markets against external shocks.