In Asia High-Yield Battle, Indonesia Grabs Upper Hand Over India

In the battle between Asia’s two highest-yielding major bond markets, Indonesia once again appears poised to gain the upper hand over India.

Global money managers are increasingly shunning Indian securities as Narendra Modi’s government hands out billions of dollars in tax cuts and subsidies to boost the prime minister’s appeal ahead of elections, blowing through the nation’s deficit target in the process. In contrast, Indonesia’s improving fiscal status and aggressive monetary policy stance in the face of global headwinds have burnished the nation’s assets in the eyes of investors.