Indonesia Bond Bulls Say Rally Will Build on Series of Rate Cuts [Yahoo! Finance]
ABRDN PLC UNSP ADR (SLFPY)
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Source: Yahoo! Finance
(Bloomberg) -- Indonesian sovereign bond bulls are betting that a rally will extend on looming interest-rate cuts as the country undergoes a change in government this month. Most Read from Bloomberg Manulife Investment Management, one of the biggest investors in rupiah bonds, is potentially looking to add to its holdings on expectations that the yield on 10-year notes may fall toward 6% from about 6.51%. Abrdn Plc also anticipates yields falling. Global funds are returning to Indonesia, a bellwether for emerging markets, ahead of Prabowo Subianto taking over as president on Oct. 20. In all, investors snapped up $4.1 billion of Indonesian rupiah bonds last quarter — the biggest net inflow since March 2019 — after a long-awaited pivot to rate cuts by Bank Indonesia and the Federal Reserve. The rally may only be at the beginning, with Indonesia's central bank expected to keep cutting rates this year and the government undergoing a transition that could lead to buying opportuniti
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