BlackRock Inc. remains a fan of long-dated Indonesian government bonds, saying the high-yield debt offers enough risk compensation in the face of local political instability.

The world’s largest asset manager has recently increased holdings of such bonds due in 10 to 15 years, shifting positions from shorter tenors, said Navin Saigal, BlackRock’s head of fundamental fixed income for Asia Pacific. The additions resulted from the longer-tenor notes’ milder reaction to Bank Indonesia’s surprise interest rate cut and the Federal Reserve’s dovish rhetoric last month, he said.

European Central Bank President Christine Lagarde warned that any government collapse in the currency bloc is a concern as the prime minister of her home country, France, appears likely to be toppled in a confidence vote next week.

The government in Paris is set to be forced to resign on Sept. 8 as opposition parties refuse to back the plans of Prime Minister Francois Bayrou for sharp spending cuts and tax increases.