Fed Rate-Cut Bets Set to Boost Indonesian Bonds More Than Peers

Indonesian bonds are likely to be the biggest beneficiary in Asia as growing expectations of Federal Reserve interest-rate cuts spur a cascade of gains across the region.

Rupiah notes will fare well as they have the highest yields in Asia, with benchmark securities offering close to 6.5%. As one of the few central banks with currency stability as a key mandate, Bank Indonesia can take advantage of any dollar weakness to ease policy further without triggering a drop in the rupiah.