The U.S. Treasury Yield Tops Psychology Limit of 3%
Last week, the U.S. 10-year Treasury yield topped the psychology limit of 3% along with the expectancy of accelerated monetary tightening by the Fed. This backdrop ignited the massive sell-off in global stocks and bonds markets as well as the depreciation of emerging countries’ currencies.
Depreciated Rupiah Urges BI to Raise Its Benchmark Rates
The impact of last-week global financial market turmoil caused Indonesia’s government bonds yield to top 7% and rupiah to near 14,000. Considering the massive foreign outflow, Bank Indonesia (BI) finally has the second plan of raising its benchmark rate in light of the global volatility potential for unstable inflation.
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