Key Points:
- The Fed signals interest rate cuts in 2024 and 2025, which Indonesia is likely to follow.
- Opportunities in Government Bonds: With falling interest rates, US Treasury and Indonesian bond yields are predicted to decline, making long-term government bonds an attractive investment choice.
- Start Investing with digibank:** The digibank by DBS app makes it easy to invest with various bond options and the digibank Advisor service to help you choose the right investment.
Hello, Sahabat digibank! This time, let's discuss about one of the signals and economic insights from the DBS CIO Insight Q3 2024, which was released recently. Hopefully, this insight will make your investment plans more focused and your wallet thicker!
Signals from the Federal Reserve: Interest Rate Cuts on the Horizon
Imagine the global economy as a grand orchestra, with the US Federal Reserve (The Fed) acting as the conductor, setting the rhythm for this orchestration. Currently, they are signaling a potential interest rate cut in 2024 and more cuts in 2025. According to the latest "dot plot," a quarterly chart that records Fed officials' projections for the central bank's key interest rate, the Fed plans one rate cut in 2024 and four in 2025. This means that Indonesia is likely to follow this rhythm and lower its interest rates as well. So, what does this mean for our finances in Indonesia?
US Bond Yields Decline
With these rate cuts, US Treasury yields are expected to decrease. It's like concert ticket prices dropping as the event approaches. When US bond yields fall, Indonesian government bond yields also tend to follow suit. So, this could be a great opportunity for you to start targeting long-term government bonds.
Why Long-Term Government Bonds?
The DBS expert team recommends that you start investing now in long-term Indonesian government bonds. Why? Because when yields fall, bond prices rise, and bonds with longer tenors usually benefit more. This means your investment value can increase over time. So, it's advised to start investing now while bond prices haven't gone up yet.
Here are some investment product recommendations you can take advantage of in relation to this opportunity!
Secondary Market Bonds
- IDR: FR101; FR100; FR098; FR097; FR089; FR102
- USD: INDON28NN; INDON42; INDON47; INDON45; INDON49
Besides bonds, the following mutual fund products can also be your recommendations:
- Offshore Sharia with exposure to tech stocks
- Upstream energy sector and financial sector
Start Investing with digibank by DBS
To start investing, you don't need to be confused. The digibank by DBS app is here as your loyal friend in investing. With more than 150+ bond and mutual fund options, you can easily find what best suits your needs and investment goals. Plus, there is the digibank Advisor service, which you can contact and chat with to help you choose the right investment recommendations according to your risk profile and financial goals.
Other Signals and Recommendations from DBS
This is just one of the many signals and recommendations that DBS captures and analyzes. With sharp analysis and precise recommendations, DBS helps you become more confident in targeting profits. Think of DBS as a navigator helping you navigate the sea of investments with greater confidence.
So, what are you waiting for? Take your first step to invest now with digibank by DBS and enjoy the results in the future. Let's make this economic signal a golden opportunity to optimize your investment portfolio!
