The yield for a 5-year PBS017 tenor sukuk was only 6.125% or the smallest among the Sukuk auctions yesterday, between 6.50% (PBS027) to 7.75% (PBS028). The smaller the reward, the lower the cost of funds will be for the government. The government won almost all incoming bids for PBS017, namely winning IDR 2.85 trillion (1x bid to cover ratio) from IDR 2.88 trillion incoming bids. On the other hand, market players are also interested in this 5-year PBS017 because it offers a yield of up to 5.45%, relatively higher than the Government Securities (SUN) with the same tenor. For the record, both the SUN benchmark FR0081 and FR0086 offer low yields that are close to the psychological level of 5%.
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