Government Bonds
The 10-year SUN yield FR0087 closed at 6.28%, based on data from the NHKSI Fixed Income Department. Market participants are again interested in Government Securities (SUN) amid the re-escalation of Covid-19 cases, making the domestic economy still unable to recover until 2H21. This is also evident from the statement of Bank Indonesia (BI) which cut economic growth to 3.5% – 4.3% this year.

Corporate Bonds
MFIN Issues Bonds With Interest Up To 9.5%. Mandala Multifinance Tbk (MFIN) will issue IDR 300 billion bonds. Shelf Registration Bonds IV Phase III is part of Shelf Registration Bonds IV with a total value of IDR 1.5 trillion. In the third phase of issuance, Mandala Multifinance will release two series of bonds. Series A bonds have a principal value of IDR 150 billion with a 367-day tenor with an interest rate of 8.75%. Series B bonds have a principal value of IDR 150 billion with a 3-year tenor with an interest rate of 9.50%. These bonds are rated idA from Pefindo. (Kontan)

BI Cuts RI’s Economic Projection. Bank Indonesia estimates that Indonesia’s economic growth will only be around 3.5% – 4.3% this year. The figure is down from the previous projection of 4.1% – 5.1%. Meanwhile, BI also revealed that Indonesia’s economic growth was at 3.9% at the midpoint. This decline in projections is influenced by the development of cases of Covid-19 transmission. The 3Q21 economy is expected to be lower than the previous quarter. The government has implemented various restrictions to reduce the rate of transmission of COVID-19. The decline in growth mainly occurred in household consumption due to limited mobility. (CNN Indonesia)

Minimum supply of PBS027, PBS017, and PBS004. Market participants can observe the lack of supply for the three series, after they were not offered in the planned Sukuk auction on Tuesday (27/07). Next week, the government will offer the SPNS14012022 (Reopening) series (0.5-year); PBS031 (New Issue) (3-years); PBS032 (New Issue) (5-years); PBS030 (Reopening) (7-years); PBS029 (Reopening) (12.6-years); and PBS028 (Reopening) (25.2-years).