Indonesia's two-year bonds were set to advance for the third straight week, the longest winning streak since December, after global funds bought the n (more)
Indonesia's two-year bonds were set to advance for the third straight week, the longest winning streak since December, after global funds bought the nation's debt. Rupiah forwards fell.
Foreign holdings of the nation's securities are poised to rise for a sixth month, the longest stretch since July 2011, with overseas investors adding 6.26 trillion rupiah ($644 million) to their local-currency portfolio this month through Feb. 20, finance ministry data show. The economy expanded at the slowest pace in two years in the fourth quarter and its current- account gap widened to the largest on record since Bloomberg began compiling the data in 1989.
"There is excessive optimism from foreign funds, so there is still chance a for yields to head lower," said Rully Nova, a currency analyst at PT Bank Himpunan Saudara 1906 in Jakarta. "The inflows may become a concern as they don't fully reflect the fundamentals, considering slower growth and the current- account deficit last quarter, and faster inflation ahead."
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