Oddbean

Global investors go 'risk-on' with Asian bonds after U.S. rate cut ========== Global investors are increasingly investing in Asian bonds following the U.S. Federal Reserve's first interest rate cut in four years on September 19, 2024; inflows into Asian bond markets excluding China surged to $12.82 billion in August 2024; 16 issuers accessed the Asia U.S. dollar international primary bond market in the first week of September, raising over $15 billion; Indonesia's central bank cut rates by 25 basis points to 6% just before the Fed's cut; concerns exist regarding U.S. political impacts on Asia's dollar bond market; foreign investors face a 20% withholding tax on Indonesian and Indian bonds; investors are divided on China's bond market, with some seeing opportunities while others remain cautious; Fidelity International's Lei Zhu and Nomura analysts provided insights on market trends. #AsianBonds #UsFederalReserve #InterestRates #Investment #Currency #Inflation #EmergingMarkets #CorporateBonds #Indonesia #China https://asia.nikkei.com/Business/Markets/Trading-Asia/Global-investors-go-risk-on-with-Asian-bonds-after-U.S.-rate-cut