Investors Turn to Asian Sovereign Bonds Amid US Election Uncertainty

Reported 28 days ago

As the US election approaches, investors are increasingly opting for Asian sovereign bonds, looking to shield themselves from potential market volatility and benefitting from significant foreign inflows this year. Major asset managers, including Allianz Global Investors and Franklin Templeton, suggest that these bonds, particularly from countries like Indonesia, South Korea, and India, offer stability amid anticipated rate cuts and geopolitical tensions. While there are risks, including potential yield disadvantages against US Treasuries, the overall sentiment remains positive for emerging market bonds.

Source: YAHOO

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