Fixed Income Update 08 May 2025
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 8 May 2025
THE FED’S STANCE REMAINS CAUTIOUS, Pending Developments Across Various Factors
The emerging room for a potential Fed Rate cut is a positive signal for the outlook of the fixed income market. However, fundamental economic indicators—including inflation, growth prospects, and labor market conditions—remain key challenges that could delay any immediate monetary easing. In addition, developments in global trade prospects, especially amid ongoing negotiations between the U.S. and other countries, will also play a crucial role.
Indonesia’s financial markets performed relatively well over the past week. Unfortunately, the rise in inflation and the slowdown in economic growth have somewhat restrained further upward momentum in the markets. On top of that, regional and global developments will continue to be decisive factors shaping the trajectory of the economy and financial markets going forward.
Regards,
KBVS Research Team