The incoming bids of some Government Securities (SBN) towards the end of April 2021 indicated recovery in domestic bonds market. In the Government Bond Securities (SUN) Auction on last Tuesday (04/27), the government successfully booked incoming bid of IDR52.7 trillion (Figure 1). This is higher than the previous auction that recorded IDR 42.9 trillion. The easing of UST yield volatility to 1.5% (Figure 4) as the auction approach increased investor trust. In more detail, FR087 managed to gain the highest bid at almost IDR 20 trillion. It was followed by FR086 with more than IDR 12 trillion. Investors’ interest in the short and medium tenor shows that they are still taking a wait and see stance, as they have not fully entered the long tenors. Hence, in this SUN auction the government successfully absorbed IDR 28 trillion.
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