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Bond Traders Raise Bets Indonesia, Philippines Next to Cut Rates

  • Both nations are scheduled to hold bond auctions this week
  • ‘There’s a lot more client interest in bonds’: QIC’s Buckley
Indonesia Resurgence Gathers Pace as Global Investors Pile In

Photographer: Dimas Ardian/Bloomberg

Updated on

The chill winds of slowing global growth that convinced the Federal Reserve to stop raising interest rates are making themselves felt in Southeast Asia -- nowhere more so than in the bond market.

Debt is rallying across the region as a worsening economic outlook prompts dovish noises from central banks, suggesting the tightening cycle is over. Indonesia and the Philippines will both hold debt sales this week that are expected to draw bumper demand if recent offerings are anything to go by. Bonds are also being boosted by slowing inflation, particularly in Malaysia, where the economy swung into deflation in January.