Indonesian bond yields rise, attracting $1.2 billion in funds

Golden Ten Data reported on June 30 that Indonesian bonds are expected to see their largest monthly capital inflow in over a year, indicating that government measures to increase bond yields in order to attract foreign capital and support the Indonesian Rupiah are beginning to take effect. Data from the Indonesian Ministry of Finance shows that, as of June 26 (UTC+8), foreign investors had made a net purchase of $1.2 billion in government bonds, putting the market on track for the biggest single-month capital inflow since May last year. "The rise in yields on Indonesian government bonds has once again attracted the attention of foreign investors," said Eugene Leow, Senior Rates Strategist at DBS Bank Singapore. "Additionally, with the U.S. dollar strengthening, Bank Indonesia's continued interest rate hikes to ensure Rupiah stability have further contributed to the positive momentum." The Indonesian asset market is showing signs of recovery.