HALISTER1: Rupiah, Baht Notes Likely to Withstand Higher DM Rates, DBS Says

Rupiah, Baht Notes Likely to Withstand Higher DM Rates, DBS Says

(Bloomberg) -- Indonesian and Thai government notes with tenors of one to two years are likely to be fairly resilient to rising interest rates in developed markets, says DBS fixed-income strategist Eugene Leow.
  • Cites speculation of further easing by the respective central banks
  • Says high absolute yields offered by rupiah notes also provide a buffer against rising rates
  • Favors shorter-duration EM Asian notes as yields will likely be anchored by regional central banks’ still-loose monetary policies
  • Longer-dated EM Asian bonds could be subject to greater volatility from rising developed-market yields
  • Philippine sovereign securities remain the most vulnerable as the economy may be at risk of overheating and peso’s underperformance also bears watching
  • NOTE: SGD, HKD Swaps Advance on Fed Outlook as Malaysian Bonds Slide
To contact the reporter on this story: Liau Y-Sing in Kuala Lumpur at yliau@bloomberg.net To contact the editors responsible for this story: Tan Hwee Ann at hatan@bloomberg.net Masaki Kondo

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Eugene Leow (DBS Bank Ltd)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283