Feb. 9 (Bloomberg) -- Asian developing nations will need to pay the highest yields in at least a month to borrow $3 billion through bond sales this week as central banks prepare to raise interest rates, Allianz Investment Management Ltd. and CIMB- principal Asset Management Bhd. said.

Local-currency government bonds handed investors losses in the past three weeks as policy makers from South Korea to Malaysia and India signaled borrowing costs cannot remain at record-low levels. Money managers are also paring holdings because of the risk of contagion from the collapse of investor confidence in European sovereign debt, according to Allianz.

“You don’t need intensive-care type measures as the economy improves,” said Raymond Tang, who oversees $6.4 billion as chief investment officer at CIMBp-rincipal in Kuala Lumpur. “I expect yields to rise as part of the market adjustments from abnormal levels to normal conditions.”

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