Negative sentiment GDP contraction, investors are interested in the safe haven of SUN. US GDP Annualized QoQ 1Q22 contracted -1.6% (Vs. Surv. -1.5%), as inventories of unsold goods increased, amid falling consumer spending. The US economy in the first quarter contracted more than expected as the trade deficit widened to a record. Meanwhile, Personal Consumption 1Q22, a 70% contributor to the economy, only grew +1.8% (Vs. Surv. +3.1%). GDP contraction amid speculations of a US recession, making investors interested in safe haven instruments, all sun benchmarks recorded a decline in yields at the end of 2Q22 trading.

Corporate Bonds
Bank Sinarmas Releases IDR 500 Billion Subordinated Bonds. PT Bank Sinarmas Tbk (BSIM) plans to issue continuous subordinated bonds I phase I in 2022 with a principal amount of Rp 500 billion. This note bears an interest rate of 6.50% per annum with a tenor of 5 years from the issuance date. The subordinated bonds will be offered to investors on 1-5 July 2022. These notes are part of the ongoing public offering of I BSIM subordinated bonds worth IDR 3 trillion. (Kontan)

Domestic Issue
Ministry of Finance Issues SUN IDR 21.87 Trillion in Private Placement. The Ministry of Finance issues four series of Government Securities (SUN) by means of a private placement with Bank Indonesia (BI). The total nominal value of the issuance is IDR 21.8 trillion. The four series of SUN are the VR0074, VR0075, VR0076, and VR0077 series, with each series are valued the same at IDR 5.47 trillion. (Kontan)

Rupiah at IDR 14,900/USD ahead of inflation data. The USD appreciation occurred after Jerome Powell’s speech said that an aggressive increase in the FFR in July was needed to suppress the spike in inflation. Meanwhile, on the domestic side, the rupiah depreciates as market players await the release of inflation data for June which is projected to rise by +0.45% MoM (+4.19% YoY), in line with rising prices for some food and domestic consumption, as well as global gold prices. The projection touches the upper limit of BI’s annual inflation target of 2%-4.2%.

Download full report HERE.