Government Bonds
A number of market players are again interested in government bonds for a week, to hedge against potential pressures for economic recovery. Yield FR0087 closed at 6.30%, based on data from the NHKSI Fixed Income Department. Buying also took place on the 10-year UST, registering a decline in yields from 1.36% to 1.30%. The decline in yields occurred despite rising inflation in June. The US Department of Labor posted June inflation at 5.4% YoY, the highest increase in 13 years. Under normal conditions, rising inflation triggers an increase in yields.

Corporate Bonds
Tower Bersama Infrastructure Issues IDR 1.2 Trillion Bonds. PT Tower Bersama Infrastructure, Tbk (TBIG) will conduct a Continuous Public Offering (PUB) of Shelf-Registered Bonds V with a target fund raised of IDR 15 trillion. At the initial stage, TBIG will offer Shelf-Registered Bonds Phase I Year 2021 with a maximum principal amount of IDR 1.2 trillion. There are two series of bonds to be issued, namely Series A with a 370-day tenor and Series B with a 3-year tenor. The bonds are rated AA+ (Double A Plus) from Fitch Ratings Indonesia. (Kontan)

RI’s Foreign Debt Down. Bank Indonesia (BI) recorded Indonesia’s foreign debt (ULN) of USD 415 billion as of the end of May 2021 or equivalent to IDR 5,976 trillion (exchange rate of IDR 14,400 per US dollar). Debt position increased by 3.1% YoY, lower than the previous month’s growth of 4.9% YoY. Total external debt fell 0.6% when compared to the position in April 2021 which amounted to USD 417.6 billion. In more detail, the government’s debt in May 2021 reached USD 203.4 billion. (CNN Indonesia)

PPKM Extension Encourages Benchmark Candidates Interest. Investors are looking forward to the announcement of the continuation of the Emergency Community Activity Restrictions (PPKM) policy. Meanwhile, the PPKM extension has the opportunity to push the benchmark candidate bids again. In the planned SUN auction on Wednesday (21/07), the government again offered FR0090, FR0091, FR0088, FR0092, and FR0089.