Indonesian bonds caught in US-China crossfire

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By Addison Gong
14 May 2019

Long-dated dollar bonds issued by Indonesian companies have been taking a beating in the secondary market, with the country's high yield sector also expected to suffer from the negative impact of an ongoing trade war between two of the world's biggest economies.

The US delivered on its threat to raise tariffs on $200bn of Chinese goods to 25% from 10% on Friday, before China, unsurprisingly, retaliated in kind on Monday. The tariff increases, varying from 5% to 25%, will be applied to $60bn of US imports from June 1.

The ...

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