(MENAFNEditorial)
JAKARTA February 18 2015— BI Rate cut to 7.5% is predicted to trigger the bond market to be more attractive and will be flooded by foreign investors in a short time.
Bond Analyst of PT Anugerah Securindo Indah Ramdhan Ario Maruto said that after the decline of BI Rate the bond market was going to be more attractive. However such condition will be just temporary probably it would be around one or two week(s).
“The BI Rate cut is going to be the moment for the investor to enter. As result there will be up trend in the market and the price will increase” he told Indonesia Business Daily (2/17/20150.
He predicts that within a week or two the state benchmark bond yield with 10 years tenure will be at 6.9%-7%.
Indonesia Bond Pricing Agency (IBPA) recorded that yesterday government bond with 10 years tenure was at the position of 7.07% or decreased by 18bps. Meanwhile five years tenure government bond was at the level of 6.99% declined by 10bps.
“Bond market searches a new equilibrium point. Slowly the price increase and yield decrease” said Ramdhan.
Even though the yield slowly decrease Ramdhan predicts that foreign investor will remain at the Indonesian bond market because it offers the highest yield in Southeast Asia. As of February 2015 foreign investor ownership at the government bond was 39.7%. Read more...
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.