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Jakarta Post

Domestic bond market lucrative for investors

  • Reny Eka Putri

    Mandiri

Jakarta   /   Wed, October 16 2019   /  02:18 am

The global economic slowdown continues, as reflected in several key indicators. The International Monetary Fund has revised down its global economic growth forecast for 2019 to 3.2 percent, lower than the rate of 3.6 percent achieved in 2018. Investors have become more selective in investing their funds, as the global economic slowdown has pushed major central banks to cut their benchmark rates. Market players tend to direct their funds to safe haven assets, such as hard currencies (such as US dollar, Japanese yen, Swiss franc), commodities (such as gold and oil) and investment grade-rated bonds.As one investment option in the domestic market, bonds are still worth collecting. The domestic bond market remains attractive due to a combination of external and internal factors. The prospects of economic slowdown and the absence of higher interest rate risks in developed countries have prompt...