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View all search resultsFalling interest rates in developed economies should see more portfolio investment flow back into emerging markets like Indonesia, but some sectors stand to benefit more than others, and caution is warranted as fears of a US recession continue to haunt global markets.
The central bank kept interest rates unchanged after a two-day meeting but announced plans to "reduce its purchase amount of JGBs (Japanese Government Bonds) thereafter to ensure that long-term interest rates would be formed more freely".
Investors are holding back from the government bond market amid rising interest rates to fend off high inflation in many major economies, leaving emerging countries like Indonesia struggling to keep up with investors’ appetite to secure capital at home.
Government bond yields have fallen further over the past few days to hit the lowest point since the end of the first quarter, but analysts say the debt obligations remain an option worth considering for low-risk investors.
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