BENGALURU, Sept 21 (Reuters) – Foreign investors are unlikely to rush back into Indonesian markets until either it pays more for its debt or gives hard evidence it will not push the central bank into longer-term monetary financing of public borrowing, fund managers say.
External demand for government debt in Southeast Asia’s largest economy, normally prized for 7% yields that are increasingly rare even in the world’s emerging markets, has slumped since March with foreign holdings hitting a decade-low in August.
Such inflows are essential for Indonesia as it strives to fund government programmes to combat the coronavirus and restart an economy weakened by months of global and domestic restrictions.
Continue read: https://www.nasdaq.com/articles/analysis-investors-may-shun-indonesian-debt-over-central-bank-worries-2020-09-21-0
