Indonesia is on track for its largest monthly foreign inflow into government
bonds since May last year after net foreign purchases reached about $1.2bn as of
June 26, the finance ministry said. The government's move to lift bond yields to
attract external capital and support the rupiah appears to be working; DBS Group
senior rates strategist Eugene Leow said higher yields renewed foreign interest,
and Bank Indonesia's continued rate hikes amid a stronger dollar have helped
accelerate inflows, leaving Indonesian asset markets showing signs of recovery.
