Reflation flashes red for Indonesia, Malaysia debt

The performance of regional bond markets this month appears to back up the findings. Indonesian bonds have handed investors a loss of 1.1% since the start of January, the poorest return in emerging Asia, while China’s bonds were the top performers, gaining 1.5%.

THE reflation trade has been gathering momentum again in recent weeks as shown by rising U.S. Treasury yields and increasing inflation expectations.

That may spell trouble for bonds in Indonesia and Malaysia.