Investors were again actively trading the new 15-year benchmark series FR0088 yesterday. The price is still below the par level, making the FR0088 yield drop by almost 10 bps. Note that the benchmark prices for FR0086 (5-year), FR0087 (10-year), and FR0083 (20-year) are all well above the par level. In addition, the minimum outstanding FR0088 in the secondary market has made investors actively seek out the secondary market. For the record, in the initial auction of new issuance FR0088 at the auction of Government Securities (SUN) last Tuesday, only IDR 12.8 trillion (bid to cover ratio of 2.5x) was won from the incoming bid for this series of IDR 31.4 trillion. On the other hand, investors have relatively realized FR0087’s profits after recording a significant gain.

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