Pressure on the domestic stock market, and the positive cases of the Covid-19 virus in Indonesia, which reached more than 1 million, have pushed investors to shift interest in safe haven instruments such as SUN. The majority of Government Securities (SUN) prices closed higher on Friday, or recorded a decline in yield for a week. In addition to the 15-year benchmark SUN price FR0088 returning to par, investors are also actively trading short tenors. The 5-year SUN benchmark FR0086 posted a yield drop of up to 3.3 bps, or the deepest drop compared to other benchmark series. Government bonds, such as SUN, are fixed income assets that are often considered as safe haven assets, in anticipation of market players in adverse economic conditions. Domestic economic recovery, again influenced by the extension of the Enforcement of Restrictions on Community Activities (PPKM) in main cities in Java and Bali until February 8, 2021.
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