The bid for the auction of Government Securities (SUN) yesterday managed to record a value of IDR IDR 78.5 trillion. This figure is slightly higher than the previous auction of IDR 78.2 trillion. This high demand again indicates that liquidity is still high, amidst the trend of low interest rates. Meanwhile, the FR0087 and FR0086 series again dominated the auction bids. The 10-year benchmark became the most sought after by investors with the number of incoming bids up to IDR 33.7 trillion, with IDR 14.7 trillion won (bid to cover ratio, BTC 2.3x). Then followed, the 5-year benchmark worth IDR 20.4 trillion, won IDR 11 trillion (BTC 1.9x). Market participants are also not worried about the Fed’s tapering discourse, which will not take place in the near future. The Fed is still observing a number of inconclusive data indicators.
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