Indonesia maintains sovereign credit rating at an investment grade
The Fitch Rating agency maintains Indonesia’s sovereign credit rating at an investment-grade position at the BBB level, with a stable outlook. In the medium term, Indonesia’s economic growth is expected to remain good with the continued support of infrastructure development and the reform agenda of the Jokowi’s second term administration, one of which is the Omnibus Law. The Omnibus Law is expected to encourage economic growth and foreign direct investment in the medium term. Indonesia’s economic challenges going forward include the high dependence on external funding sources and low government revenue. (Fitch)
Treasury yields slid to their lowest level in more than three months in Asia on mounting concern that the spread of the coronavirus is accelerating. The yield on 10-year U.S. bonds dropped as much as six basis points to 1.62%, the lowest since Oct. 10, as deaths from the infection in China rose to at least 80 and the number of confirmed cases soared beyond 2,700. Haven bids saw similar-maturity Japanese government bond yields reach minus 0.05%, the lowest since early December.