Government Bonds
SUN Yield Mixed, Amid Indonesia’s 2Q21 GDP Growth. A number of market players responded positively to Indonesia’s 2Q21 Gross Domestic Product (GDP), which grew 7.07% YoY. This figure far exceeded market expectations which were in the range of 6.50% to 6.57%. The yield of 10-year Government Bonds (SUN) closed at 6.26%. On the other hand, speculation on GDP in 3Q21 which has the potential to decline again, made the SUN market closed mixed. Investors are again looking at the impact of the implementation of Community Activity Restrictions (PPKM) since July until now.
Corporate Bonds
idBBB+ rating for Pos Indonesia Bonds. The Indonesian Securities Rating Agency (Pefindo) has affirmed its idBBB+ rating for Pos Indonesia (Persero) Medium-Term Notes (MTN) worth IDR 335 billion which will mature on October 2, 2021. The company will fully repay the maturing MTN using internal cash. As of March 31, 2021, Pos Indonesia also has cash available for use of around IDR 1.1 trillion. (Kontan)
Macroeconomy
Indonesia’s Economic Growth Grows 7.07%. The Central Statistics Agency (BPS) noted that Indonesia’s economic growth grew 7.07% YoY or 3.31% QoQ in 2Q21. This growth was higher than minus 0.74% in 1Q21 and minus 5.32% in 2Q20. Meanwhile, cumulatively, Indonesia’s economic growth was 3.1% in 1H21 from 1H20. The realization of this growth was influenced by export growth which increased by 10.36% from 1Q21, and grew by 55.89% from 2Q20. On the other hand, economic growth was also supported by increased community mobility in 2Q21. (Kontan)
Recommendations
Indonesia’s GDP and US Labor Data. These two things became the sentiment driving the SUN market over the weekend. Market participants are also watching the US unemployment benefit claims data which is in line with market expectations. Meanwhile, the yield on 10-year UST is moving in the range of 1.2%, having previously touched the level of 1.13%.
