- Higher perceived risks as highlighted by the recent downgrade call and rising CDS spreads, coupled with expected higher yields globally, may sustain foreign selling pressures on the SBN market.
- Domestic demand may help to keep SBN yields relatively stable, but the same condition may enable foreign investors to exit without too many repercussions.
- Banks’ balance sheet and the government’s budget posture may remain stable despite the risk of further stress in the SBN market.
