This caused the government not to win PBS029 (12.9-years), and the low nominal won by PBS017 (4.5-years) and PBS004 (15.8-years). Investors expect the yield to enter PBS029 up to 6.90%, or 25 bps higher than the weighted average yield of this series in the previous auction. In addition, the government also only won PBS017 worth IDR 400 billion (bid to cover ratio, BTC of 6.9x), from the bid for this series worth IDR 2.7 trillion. In fact, the government only won IDR 15 billion (BTC 165.1x) for the PBS004 series, with an incoming bid of IDR 2.4 trillion. Market players expect yields to be too high, amidst the sloping yield of Sukuk. The decision of Bank Indonesia (BI) to revise the projection for Indonesia’s economic growth in 2021 from 4.3% to 5.3% to 4.1% to 5.1%, has prompted investors to return to their interest in investing in bonds compared to riskier assets such as stocks.
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