High Coupon Holds SUN Market. NHKSI Research sees that only FR0083 recorded a price increase or yield decrease in yesterday’s trading, based on Bloomberg data. This 20-year benchmark series of Government Bonds (SUN) recorded a yield reduction of 6.4 bps, compared to other benchmark series which recorded yield increases of between 0.5 bps to 2.1 bps. Investors are interested in FR0083 because it offers a coupon rate of up to 7.50%, or the highest of other benchmark series between 5.50% to 6.50%. We see that the decision of market players is in the midst of the certainty of the burden sharing policy in 2022. The intervention of Bank Indonesia (BI) in the primary market limits volatility, thereby making investors interested in Government Securities (SBN) which offer high coupons.

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