Government Bonds
SUN Yield Mixed, in the Middle of Cadev Increase. The yield of 10-year Government Bonds (SUN) closed at 6.28%. The weekend SUN market movements were relatively mixed, after Bank Indonesia (BI) recorded Indonesia’s foreign exchange reserves (cadev) as of July 2021 worth USD 137.3 billion. This figure, up USD 200 million from the previous month.

Corporate Bonds
BFIN Lists IDR 1 Trillion Debt Instruments. BFI Finance Indonesia Tbk. (BFIN) will list the Shelf-Registered Bonds Phase II 2021 on Monday (9/8/2021). The IDR 1 trillion bonds consist of three series. First, Series A Bonds (BFIN05ACN2) with a fixed interest rate of 5.25% per annum with a nominal value of IDR 210 billion. Second, Series B Bonds (BFIN05BCN2) with 6.25% interest with a value of IDR 260 billion with a 2-year tenor. Third, Series C Bonds (BFIN05CCN2) with 7.25% interest with a value of IDR 530 billion with a 3-year tenor. Meanwhile, the rating from Fitch Rating Indonesia for bonds is A+. (Bisnis Indonesia)

Foreign Exchange Reserves Rise To USD 137.3 Billion. BI recorded a reserve position of USD 137.3 billion at the end of July 2021. That figure increased 0.14% from the position of the previous month, USD 137.1 billion. The cadev position is equivalent to financing 8.9 months of imports or 8.6 months of imports and servicing government foreign debt. Meanwhile, the increase in Cadev at the end of July was influenced by the issuance of government global bonds as well as tax and service revenues. (CNN Indonesia)

Investors Observe the Consumer Confidence Index. In addition to waiting for the decision on the status of the PPKM extension today, market participants are also waiting for the release of the Consumer Confidence Index (IKK) survey for the July 2021 period. A number of investors are watching the potential for pressure on the IKK, after tightening social and economic activities. This week, the government again did not offer PBS030. On the other hand, the government again offered PBS031, PBS032, PBS029, PBS004, and PBS028 in the planned Sukuk auction tomorrow.