Worried about the Indonesian Rupiah?
Find out why investors in the IDR bond market are treading with care.
OCBC Bank said:
Caution remains prevalent in the IDR bond market, as inflationary fears coupled with worries on the IDR prospect continue to linger. Current yield on the 10Y IDR bonds is at around 5.9%, almost 100bps higher than its low in early February. Should inflation were to spike to 7% and higher after the fuel price hike (likely in April), we should not rule out the yield on the 10Y IDR bonds rising to around 6.5%, with the initial spike possibly even higher than that.