Foreign Inflows into Indonesian Government Bonds
Last week, the Indonesian government (SBN) outflows totaled IDR13.11 trillion as Indonesia Composite Bond Index (ICBI) closed lower at 0.51% to 251.70. Slumping prices of SBN corresponded to downward revisions to prices of other emerging economies’ sovereign bonds and were ignited by external and domestic sentiments. On Monday, 04/22/2019, the rising global crude prices and investors’ profit taking after 2019’s presidential election driving SBN’s prices well below. Declines persisted until Bank Indonesia (BI) re-announced to hold 7-DRRR unchanged. BI’s stance failed investors’ expectancy of lower 7-DRRR. On the weekends, declines were exacerbated by a slowdown in South Korea’s economy, capable of stunting global economic growth.
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