Government Bonds
Balance of Payments Deficit, Mixed SUN Market. Bank Indonesia (BI) recorded Indonesia’s 2Q21 Balance of Payments (BOP) at a deficit of USD 450 million. This figure is much significant compared to 1Q21 which was able to make a surplus of more than USD 4 billion. Over the weekend, the yield on 10-year Government Bonds (SUN) was around 6.35%. Meanwhile, the yield on UST for a similar tenor was at the level of 1.23%. The UST yield is lower, although the Fed plans to taper off later this year.
Corporate Bonds
Global Mediacom Offers IDR 1 Trillion Bonds and Sukuk. Global Mediacom Tbk (BMTR) will offer the 2021 Shelf-Registered Bonds II Phase II of IDR 700 billion and the Shelf-Registered Sukuk Ijarah II Phase II of 2021 amounting to IDR 300 billion. Both the Bonds and Sukuk were issued in three series. (Investor Daily)
Macroeconomy
Indonesia’s 2Q21 Balance of Payments Deficit USD 400 Million. BOP in 2Q21 experienced a deficit of USD 400 million, after scoring a surplus of USD 4.1 billion in the previous quarter. Furthermore, the current account deficit (CAD) in 2Q21 was recorded at USD 2.2 billion or 0.8% of Gross Domestic Product (GDP). This CAD widened from the previous quarter of 0.4% of GDP, as the goods balance surplus increased. (Kontan)
Recommendations
Fed’s Meeting Continuation Signal. Market participants are again paying close attention to further signals from the Fed in its annual meeting scheduled for this week. Earlier, the Fed signaled the possibility of tapering starting at the end of this year. Tomorrow, the government will offer SPNS 12022022, PBS031, PBS032, PBS030, PBS029, and PBS028 in the Sukuk auction on Wednesday (24/08). NHKSI Research sees the potential for high bids to still occur in SPNS 12022022 and PBS031, amid waiting for the results of the Fed’s follow-up meeting.
