When compared to Chinese bonds, Indonesian and Indian bonds did better during the third quarter of this year due to the volatile nature of the world financial markets. Indian bonds lost 0.4% and 1.5%, respectively, of their nominal value in dollars during the third quarter of this year. According to Bloomberg News, its value is significantly lower than the bonds of other growing economies in Asia.
According to Duncan Tan, an economist at DBC Group Holdings, the high yield on bonds from Indonesia and India more than made up for the drop in their face value during the third quarter’s widespread selling of Treasury securities.
Investors were able to avoid the panic in the US Treasury market, which had the longest slide in almost ten years, thanks to the stability of Indian and Indonesian bonds at the level of emerging economies.
Given the current high volatility in Chinese bonds, the Indonesian and Indian bonds also offered a substitute for the Chinese bonds, which were previously seen as a safe haven for investors.
Due to the continuous drop in the yield on Chinese decimal bonds relative to US bonds, the second largest economy in the world after the US did not experience the foreign cash flows it did previous year.
In the third quarter, Indian and Indonesian bonds performed better than Chinese bonds.
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