Based on data from Directorate General of Budget Financing and Risk Management, results from bond auction on Tuesday (07/14), recorded incoming bids of IDR 61.2 Trillion. Wait and see approach from Foreign Investors, as the biggest holders of SBN, contributed to the lower incoming bids compared to previous auction. On the other hand, government awarded all fixed rate series, which are: FR0081, FR0082, FR0080, FR0083, and FR0076 during this first auction in 3Q20. The most sought after series was FR0081 with amount of IDR 25.1 Trillion. Followed by FR0082 with IDR 15.5 Trillion. However, the lack of interest in short-term bond, caused no Treasury Bond to be awarded. Series SPN03201015, recorded the lowest bids of IDR 300 Billion, followed by SPN12210429 with IDR 1.75 trillion. Investors are currently showing little interest in treasury bonds amids low yields era. NHKSI Research views this auction to predominantly by domestic Investors and Bank Indonesia. Aside from Burden Sharing scheme, Government Decree No: 1/2020 has given BI the rights to buy SBN from primary market.
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