HALISTER1: Indonesia Bonds Supported by BI Easing Bias, Fed on Hold: DBS

Indonesia Bonds Supported by BI Easing Bias, Fed on Hold: DBS

(Bloomberg) -- Yield on Indonesia’s 10-year govt bond drops for sixth straight day, longest stretch since Aug. 2, amid expectations that central bank will cut policy rate today.
  • Yield on 8.375% govt bond due Sept. 2026 slips 6 bps to 6.898%, according to IDMA data; BI may cut key rate by 25 bps to 5.00% today, according to 16 of 19 economists in Bloomberg survey with rest seeing no change
  • Combination of easing bias by BI and the “on hold stance’ by the Fed renders conditions positive for Indonesia’s bonds, says Eugene Leow, Singapore-based fixed-income strategist at DBS
  • Markets are also relieved that the Fed put in ‘‘a much slower rate-hike profile” for 2017
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Eugene Leow (DBS Group Holdings Ltd)

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