External Sentiment Holds Weekend Market. The price of Government Securities (SUN) closed mixed at the end of the week, amid optimism on the positive sentiment from the US government’s stimulus. The latest news the US parliament is close to the agreement. The 10-year benchmark SUN FR0082 experienced an increase in price, as indicated by lower yields. Yield FR0082 edged down 0.2 bps to 6.58%. Meanwhile, other benchmark series recorded an increase in yield. The movement at the end of this week, ended the rally in SUN prices in the last two days. So that for two consecutive days, SUN prices were relatively mixed. In addition, positive sentiment comes from the drug remdesivir which has received approval from the US Food and Drug Administration (FDA) for the treatment of Covid-19.

Bank BTPN pays principal and bonds worth IDR 916.8 billion. The banking issuer Bank BTPN Tbk (BTPN) said that it had paid the principal and interest on the 12th bond on 19 October 2020. Based on the company’s written statement, Bank BTPN in its disclosure report on the Indonesia Stock Exchange (IDX) on 19 October 2020 confirmed that the Company has paid the principal and interest on the 12th Bonds with a total payment of IDR 916.8 billion. For information, the 12th Bond is a Continuous Bond III Bank BTPN with a Fixed Interest Rate Phase II Year 2017 Series B has a principal debt of IDR 900 billion with an interest of IDR 16.87 billion and an interest rate of 7.5% and matures on October 17, 2020. For the record, Fitch Ratings Indonesia has assigned an “AAA (idn)” rating for this 12th Bond. (Okezone)

Realization of Burden Sharing Reached 63.5%. The Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance (Kemenkeu) stated that of the IDR 397.6 trillion ceiling for public goods, the total that has been fulfilled is IDR 252.6 trillion. This means that the ceiling that still has to be fulfilled in the remaining two months is IDR 145 trillion. Last week’s realization of burden sharing in public goods financing will be earmarked to boost people’s purchasing power in 4Q20. From last week’s realization of burden sharing, the government and BI recorded that they had shared the burden five times. The government first issued SUN through a private placement to BI on 6 August. The government sold IDR 82.1 trillion of variable rate debt securities series VR0034, VR0035, VR0036, and VR0037 with a value of IDR 20.52 trillion each. Second, the government only issues IDR 16.9 trillion in SUN through a private placement. On the issue on August 27, the government sold the VR0038, VR0039, VR0040, and VR0041 series with a value of IDR 4.24 trillion each. Third, the government issues IDR 84.4 trillion in SUN through a private placement. On the issue on September 24, the government sold four series of SUN, namely VR0042, VR0043, VR0044, and VR0045. Fourth, the government issued IDR 46.2 trillion in SUN. On the issue on October 8, the government issued four series of SUN, namely the VR0046, VR0047, VR0048, and VR0049 series. (Kontan)

Investors Have the Opportunity to Be Interested in Long Tenor Sukuk, at the auction on Tuesday (27/10) tomorrow. For information, the government offers as many as five series of sukuk with an indicative target of IDR 10 trillion. The five series consist of 6-month tenor SPNS14042021, PBS027, PBS026, PBS025, and PBS028. NHKSI Research sees long tenor yields as offering attractive yields, after relatively wide spread yields between short and 10-year tenors. It is this difference that has the opportunity to make investors shift from short tenors to 10-year tenors and above. Meanwhile, these investors are interested in the opportunity to push the bid for the sukuk auction this time to be in the range of IDR 40 trillion to IDR 50 trillion. At the end of the week, the rupiah exchange rate closed at IDR 14,660 / USD on the spot market, or rose 0.26% in a week.

-REVIEW (Okt. 23, 2020)-
FR0081 (5yr): +0.0 Bps to 104.18 (5.46%)
FR0082 (10yr): -0.2 Bps to 102.94 (6.58%)
FR0080 (15yr): +1.6 Bps to 102.72 (7.19%)
FR0083 (20yr): +0.8 Bps to 102.87 (7.22%)

FR0086 (6yr): -0.1 Bps to 99.89 (5.52%)
FR0087 (11yr): +1.5 Bps to 99.21 (6.60%)

UST 2yr: +0.002 point to 0.15%
UST 5yr: +0.002 point to 0.37%
UST 10yr: -0.013 point to 0.84%
UST 30yr: -0.035 point to 1.64%
German Bund 10yr: -0.009 point to -0.57%
UK Gilt 10yr: -0.003 point to 0.27%

CDS 2yr: -1.28% to 37.76
CDS 5yr: -0.92% to 94.00
CDS 10yr: -2.97% to 159.78

WTI: -1.94% to USD39.85/Barrel
BRENT: -1.62% to USD41.77/Barrel
Source: Bloomberg