-GOVERNMENT BONDS-
The bid to cover (BTC) ratio in the auction of Government Securities (SUN) yesterday was 2.12x. Taking into account the reasonable yield on government securities in the secondary market, as well as maintaining the cost of funds, the government only won IDR 18.9 trillion from the seven series of incoming offers worth IDR 40 trillion in total. This figure is below the indicative target previously set at IDR 30 trillion. This entry bid is the lowest, during the implementation of the SUN auction in 2021. For the record, in the previous auction the government was still able to collect incoming bids worth IDR 49.7 trillion. NHKSI Research sees low incoming bids in accordance with previous projections, as investors are still taking a wait and see attitude. A number of market players are still waiting for the policies to be taken by the Fed at the FOMC meeting on March 16-17, 2021.

-CORPORATE BONDS-
Pegadaian for IDR 4.04 Trillion in Bonds Issuance. Pegadaian (Persero) plans to issue bonds amounting to IDR 4.04 trillion, to support the company’s expansion. These debt securities consist of Phase IV Pegadaian Sustainable Bonds with a value of IDR 3.28 trillion. In addition, Sustainable Sukuk Mudharabah I Phase IV with a value of IDR 765 billion. The Shelf Registration Bond IV Phase IV will be issued in two series. Series A has a principal value of IDR 2.17 trillion, an interest rate of 4.85% and a tenor of 370 days. Meanwhile, Series B has a principal value of IDR 1.1 trillion, an interest rate of 6.2% and a 3-year tenor. Meanwhile, the Sustainable Sukuk Mudharabah I Phase IV was also issued in two series. Series A was issued with a principal value of IDR 599.2 billion, floating profit sharing and a 370-day tenor. Then, Series B was issued with a principal value of IDR 165.8 billion, floating profit sharing and a 3-year tenor. Meanwhile, the public offering period for the issuance of debt securities will be carried out on March 29-31, 2021. Allotment will be carried out on April 1, 2021 and listing on the Indonesia Stock Exchange (IDX) on April 7, 2021. (Investor Daily)

-MACROECONOMY-
Decrease in Final Income Tax Rates for Construction Services to Stimulus the Business World. The government plans to lower the final income tax (PPh) rate for construction services. The agenda is contained in the Draft Government Regulation (RPP) concerning the Second Amendment to Government Regulation Number 51 of 2008 concerning Income Taxes from Construction Service Business Income. This policy will boost growth in the construction and property sectors. Moreover, the previous government has provided a discount on value added tax (VAT) for landed houses and flats with certain criteria, as well as Bank Indonesia which relaxed the down payment (DP) rule to 0%. Construction cannot be separated from the property. Property has been given, so the construction must also be given, so that the aim of encouraging economic recovery can be faster. (Kontan)

-RECOMMENDATION-
Investors Still Wait and See ahead of FOMC Meeting Results. Investors are again watching the 10-year UST yield, which is still at the level of around 1.60%. This figure is still quite high, even higher than the highest level in February last year. Market players are relatively waiting and seeing ahead of the results of the Federal Open Market Committee (FOMC) meeting tomorrow, which is projected to take steps to reduce UST yield volatility. NHKSI Research projects that the Fed will reactivate Operation Twist, which was previously carried out 10 years ago. On the other hand, today the government is again holding an additional auction (Green Shoe Option) of SUN. The government is offering back FR0086, FR0087, FR0088, FR0083, and FR0089. The five SUN series were offered with a weighted average yield of 5.86%; 6.73%; 6.54%; 7.44%; and 7.02%.