(Bloomberg) — Investors are turning to Asian sovereign bonds to ride out the US election, giving a boost to markets that have already benefited from billions of dollars of foreign inflows this year.
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Asset managers such as Allianz Global Investors, Franklin Templeton and Gama Asset Management are bullish on government debt in Asia ex-China. Expectations of rate cuts have buoyed demand, and they say these bonds will be safe havens in the event of market jitters around the election.
“In the next few weeks, there’s going to be a lot of noise,” said Christy Tan, an investment strategist at Franklin Templeton, which had over $1.6 trillion of assets under management at the end of September. “If you look outside of the US into Asia, where are the safe havens? The easiest that comes to mind is Indonesian bonds,” she added, pointing to the country’s manageable inflation and the positive impact of its new…
