-- Indonesia's government bond market may see fresh pressure as heightened geopolitical risks after stalled Iran-US peace efforts weigh on investor sentiment and prompt a broader shift away from emerging-market debt, The Jakarta Globe reported Monday.
Market observers say this could lead to higher borrowing costs as investors seek stronger returns in safer assets, including US government securities, amid elevated global uncertainty. Economist Yusuf Rendy Manilet of CORE Indonesia said the situation reflects broader risk aversion in global markets rather than the negotiations themselves, and could keep yields elevated in the near term, according to the report.
He estimated the benchmark 10-year government bond yield, currently near 6.6%, could edge up to around 6.8%, although domestic fundamentals and Bank Indonesia's policy support are expected to limit downside risks, the news outlet said.
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