The benchmark 10-year government bond yield fell to 6.35% yesterday. This movement is in the midst of waiting for the release of a number of domestic economic data, such as the trade balance and the BI Seven Days Reverse Repo Rate (BI 7-DRRR). Based on a Bloomberg survey, the trade balance in May was a surplus of USD 2.3 billion, and the BI 7-DRRR for the June period remained at the level of 3.50%. As for external sentiment, investors are looking forward to the outcome of the Fed meeting starting today. Market participants believe that the Fed will not change its view.

Corporate Bonds
PTPP Prepares IDR 1.04 Trillion Funds. Contracting issuer PT Pembangunan Perumahan (Persero) Tbk. (PTPP) allocated IDR 1.04 trillion to pay off debt securities that will mature in early next month. Meanwhile, the bonds which will mature on July 6, 2021 are PTPP Phase I 2018 Continuous Bonds II with a principal value of IDR 1.04 trillion. The source of funding to pay off maturing bonds will be taken by issuers from the issuance of PTPP Phase I Shelf-Registered Bonds III 2021. PTPP plans to issue PTPP Phase I Shelf-Registered Bonds III and PTPP Phase I Shelf-Registered Sukuk Mudharabah I in 2021 for a maximum of IDR 2 trillion. (Bisnis Indonesia)

Kadin: 3Q21 Economy Only 5%. The Indonesian Chamber of Commerce and Industry (Kadin) estimates that in 3Q21 the domestic economy will continue in the positive zone, or grow 5% YoY. This projection is more pessimistic, compared to the government’s projection of growth in the range of 5.8% YoY to 7% YoY. This figure jumped from the realization of 3Q20 minus 3.49 YoY. Meanwhile, the economy can grow 5% in 3Q21 as long as the government issues policies that are conducive to the recovery and normalization of economic activities. Including good and smooth pandemic control, the stimulus is focused on moving the real sector, investment and exports intensified. (Kontan)

Investors Interested in PBS027. Market participants have the opportunity to return to high interest in PBS027, supported by abundant domestic liquidity. This is in line with the disbursement of bank credit that has not been maximized. NHKSI Research also sees a stable rupiah exchange rate and low UST yield, as positive sentiments for today’s Sukuk auction. For the record, the Sukuk auction last June 2 recorded an entry bid of IDR 44.6 trillion, with a nominal value of IDR 11 trillion won.