Based on the situation where the Fed's monetary policy is expected to turn, BlackRock predicts that Asian central banks will cut interest rates as early as the second quarter of this year, and holds an optimistic view on the Asian fixed income markets. Due to the relatively high overall yield and the potential for returns through spreads, capital appreciation, etc., BlackRock is particularly bullish on most Southeast Asian and South Asian markets, especially India, as India has strong local fundamentals and is seen as a market with sustained strong growth from the perspective of population structure, infrastructure, economy, and geopolitics. In addition, a "neutral" view is held for China, the Middle East, and North Asia. Neeraj Seth, Managing Director and Head of Fixed Income Investments for BlackRock Asia-Pacific, and Navin Saigal, Managing Director of Asia Macro Markets, stated that with the strong call for US interest rate cuts this year and the impact on the US economy due to the labor market, inflation, and declining consumer demand, the market's interest rate expectations have changed. As investors become more certain about the timing of the Fed's pause in rate hikes, they believe that 2024 will be a crucial year for fixed income. BlackRock points out that Asian fixed income assets have lower correlation with US fixed income assets, and Asian fiscal deficits are low with stronger economic growth. With the global yield curve declining and economic slowdown, this indirectly provides investors with a diverse investment choice.