Government Bonds
A number of market participants responded positively to the June Foreign Exchange Reserves (Cadev), which rose 0.51% to USD 137.1 billion. The increase in cadev increases the ability of Bank Indonesia (BI) to maintain the current volatility of the rupiah. The strengthening of the SUN market was also in the midst of a decline in the 10-year UST yield, which fell 2 bps to 1.35%. The temporary rise in inflation and the condition of the US labor market, made market participants predict the Fed will continue to maintain its dovish stance.

Corporate Bonds
Modernland Realty Completes Payment of Bonds Due. PT Modernland Realty Tbk completed the payment of the Shelf-Registered Bonds I Phase I Year 2015 Series B with a principal amount of IDR 150 billion. This is following the filing for restructuring on July 14, 2020 and agreeing to make several changes, including changes in bond interest rates. Then the change in the principal repayment date of the bonds, the addition of guarantees on the bonds and the addition of provisions regarding accelerated payments by the Company. (Kompas)

Indonesian Cadev in June 2021 Reaches USD 137.1 Billion. The position of Indonesia’s foreign exchange reserves (Cadev) increased in June 2021. Bank Indonesia noted that the foreign exchange reserves at the end of semester I-2021 reached USD 137.1 billion. This amount increased by USD 0.7 billion or 0.51% MoM from the position in May 2021. At that time, Indonesia’s foreign exchange reserves were at the level of USD 136.4 billion. The increase in the position of foreign exchange reserves in June 2021, among others, is influenced by the issuance of the Government’s Global Sukuk as well as tax and service revenues. (Kontan)

Consumer Confidence Index Data. Market participants have the opportunity to respond positively to the decline in UST yields. In the short term, investors can pay close attention to short and medium tenor SUNs. On the other hand, the SUN market is also waiting for the release of Consumer Confidence Index data for the June period today, amidst all parties questioning the effectiveness of implementing the Emergency Micro PPKM.