A sale of Indonesian sovereign debt drew the most bids in more than three years, underscoring rising demand for emerging-market assets as trade tensions eased.
The ministry of finance received 94.98 trillion rupiah ($7 billion) of offers at an auction of 15 trillion rupiah of government bonds. The level of incoming bids was a record based on data compiled by Bloomberg going back to September, 2016.
The auction, taking place just one week after the US-China phase-one trade deal, suggests that investors are returning to developing-nation assets as global growth risks recede. The benchmark 10-year Indonesian bond yield dropped to its lowest since April 2018.
“Foreign and local investors entered the auction today due to offshore easing in global geopolitics, local seasonality and an attractive return to the risk provided by the bonds,” said Branko Windoe, treasury head at PT Bank Central Asia.
The government ended up selling 20 trillion rupiah of debt. Indonesian auctions are a widely-watched barometer of global risk appetite as overseas investors own almost 40% of the nation’s sovereign bonds.