Indonesia’s bond market is on track to recover its year-to-date outflows as overseas investors increase their holdings of rupiah-denominated debt, spurred by expectations of imminent interest-rate cuts by the Federal Reserve.
Global investors have purchased nearly $1.1 billion worth of Indonesian government bonds this month, according to data from the finance ministry compiled by Bloomberg. This influx of foreign capital has significantly reduced the net outflow from the bond market, bringing it down to just $13 million for 2024.
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