Fund giants clamouring for high-yield bonds

Foreign investor apathy is dealing a blow to Bank Indonesia’s efforts to stabilise its currency after outflows of about US$2.5bil from rupiah debt in the last three months, the biggest in a year. — Reuters

JAKARTA: Foreign investors are setting the bar high when it comes to buying Indonesian bonds, as debt from other regions starts to look more attractive.

Yields on Indonesia’s benchmark sovereign bonds need to rise to 7.5%, which is around 80 basis points higher than where they are now, say JPMorgan Asset Management and First Sentier Investors.