The majority of government bonds (SUN) prices were depressed for a week, causing some long tenors to record higher yields. Market participants are still optimistic about the outlook for the domestic economy, after the release of 2Q21 GDP data. On the other hand, the decline in yields for some short tenor SUNs, indicates concerns that there will still be potential pressure on the economy in 3Q21 to come. Investors are still interested in short tenor SUNs, compared to long tenors, which offer higher yields with wider volatility.
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