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Barccays Sees Slowing Demand For INDOGBs

IDR

"We think foreign-investor interest in IndoGBs could weaken given the bearish global duration backdrop and relatively rich valuations. The recent pace of concentrated foreign buying of IndoGBs has stalled as we expected, especially in an environment where markets continue to revise up Fed funds terminal rate expectations and with IDR resilience likely behind us. We continue to expect IndoGBs to cheapen, on rich valuations and too-tight term premia given the macro outlook and short-term risks. "

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