Posted on 03/04/2020 5:06:18 PM PST by BenLurkin
The yield on 10-year Indonesian government bonds dropped more than 23 basis points to 6.637% - the sharpest drop in nearly nine months. They have fallen 41 basis points in two days, retracing most of a 45 basis point jump late last week.
The yield on Singapore's 10-year paper fell 10 basis points to 1.352% for its sharpest drop in almost four years, while two-year yields fell as far as 12.7 basis points to their lowest since 2017.
Indian 10-year bond yields fell 10 basis points to 6.241%.
"With U.S. yields going yet lower, the yield differential factor appears to be coming back into play for some local currency bonds," said Frances Cheung, head of emerging Asia currency and rates strategy at Westpac.
"The search for yield may be coming back as U.S. dollar yields fall."
The Fed dropped its benchmark funds rate half a percentage point overnight, its first off-schedule cut since the depths of the global financial crisis in 2008, sending U.S. 10-year yields to a once-unthinkable low of 0.9060%.
At the same time, Indonesia has stepped up its own stimulus measures and the central bank has vowed to increase intervention to support the currency and stem capital outflows.
The Indonesian rupiah rose more than 1% against the dollar on Wednesday, its best daily gain in over a year.
(Excerpt) Read more at finance.yahoo.com ...
Not a time for nervous people.
I’m staying high growth.
Just for clarity, I have 5-10 years before retirement.
Central Banks are going to destroy us all.
“Central Banks are going to destroy us all.”
They have been farming us for years. Try auditing the FED and see what happens.
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