Indonesian authorities urged its top banks to lower interest rates and boost lending




Banyuwangi

Indonesian authorities urged its top banks to lower interest rates and boost lending to sectors hit by the coronavirus as Southeast Asia’s largest economy steps up efforts to mitigate the economic fallout from the epidemic. Banks have been asked to pass on the benefits of recent cuts in benchmark interest rates and reserve requirements to borrowers, especially small and medium-sized enterprises, Coordinating Minister for Economic Affairs Airlangga Hartarto said after a meeting with chief executives of lenders including PT Bank Mandiri and PT Bank Rakyat Indonesia. (Bloomberg)

Treasury 30-year yield dropped to a new record low, leading another rally in bonds as traders hedge against the spread of the coronavirus in the U.S. Yields on the 30-year debt fell as much as five basis points to 1.49%, while the benchmark 10-year dropped three basis points. The U.S. is reporting more cases throughout its states on a daily basis, with investors increasingly concerned about the impact of the virus on the world’s biggest economy. Federal Reserve Bank of Dallas President Robert Kaplan said the virus spread would be weighed by policymakers when they meet later this month. (Bloomberg)

 

Source: Danareksa Sekuritas Debt Research
Photo by Aditya Indrajaya