Halister News

(Bloomberg) -- Rupiah heads for 11th straight day of rally that would be its longest winning streak since Jan. 2010 as foreign investors add to holdings of the nation’s govt bonds.

• Global funds bought net 453b rupiah ($34m) of local govt notes on March 1, adding to 29.3t rupiah worth of net purchase in first two months of this year: finance ministry data
• USD/IDR -0.3% to 13,255
• Investors should take a buy-on-dip approach to Indonesian bonds as macro backdrop is still supportive for fixed-income securities, Nomura analysts say in March 2 note
  • Expectations of further policy easing remain intact
  • Inflation expected to remain subdued
  • 10-yr yield to remain capped at 8.40%-8.50% zone; suggests investors stick with tenors below 10 years, as this part of curve should benefit directly from monetary easing expectations
• Yield on 8.375% securities due Sept. 2026 dropped 13bps yday, most since Feb. 1, to 8.139%, according to IDMA data
• State of emergency declared for Sumatra after magnitude 7.8 earthquake struck off the island of the area