The yield on the 10-year FR0087 SUN is around 6.50%, which remains attractive amidst the BI 7-DRRR which remains at 3.50% for the May 2021 period. This has resulted in a spread of real yield of 500 bps, or higher compared to the region. In addition, high bids entered the post-Idul Fitri holiday, indicating fairly good domestic liquidity. In more detail, the bid for the SUN auction last Tuesday (25/05) was valued at IDR 78 trillion. This high bid was supported by the FR0086 and FR0087, recording incoming bids of up to IDR 28 trillion and IDR 26.2 trillion, respectively. In this auction, the government won IDR 32.5 trillion or slightly above the indicative target.
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