0456 GMT - Goldman Sachs recommends going long Indonesia 1-year Sekuritas Rupiah Bank Indonesia (SRBI) bills fully foreign-exchange hedged, three members of GS's Economics Research team say in a research report. "We see significant scope for 1-year SRBI yields to drop, mirroring BI rate cuts and spread compression versus the policy rate," the members say. Indonesia's monetary-policy outlook and relatively light foreign positioning in the country's government bond market are supportive of lower Indonesian bond yields, the members say. GS expects BI to cut rates by 25bps another three times, taking the policy rate down to 5.25% by 1Q 2025. GS recommends trade entry at 6.90% and stop-loss at 7.50%, with target of 5.70%. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

October 03, 2024 00:56 ET (04:56 GMT)

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