Series PBS027, PBS004, and PBS028 recorded a weighted average yield of 4.90% respectively; 6.66%; and 7,18%. This figure is 2bps, 7bps and 2bps lower than the previous Sukuk auction. Yields decreased this Indonesian sukuk, amid the increasing trend and volatility of UST yields. Previously, NHKSI Research projected that market players expected higher yields, which then made the government selective in winning the Sukuk auction yesterday. Using the assumption that the UST yield is projected to touch the level of 1.8%, this could push the yield of 10-year Government Securities (SUN) up to 7%. In this initial Sukuk 2Q21 auction, the government only recorded incoming bids worth IDR 14.5 trillion with a nominal value of IDR 7.3 trillion won, or still below the indicative target of IDR 10 trillion.

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