Government Bonds
Investors responded negatively to the increase in Covid-19 cases in Indonesia. This development has made investors interested in short to medium tenor Government Securities (SUN). For the record, the Ministry of Health reported the total positive cases of Covid-19 in Indonesia to be 2 million. From a global perspective, the 10-year UST yield rose again from the level of 1.48% to 1.49%. The yield movement was in the midst of waiting for the release of the Personal Consumption Expenditure (PCE) index in May.

Corporate Bonds
ADHI Aims for More Than IDR 3.4 Trillion. Adhi Karya Tbk (ADHI) will utilize three funding options, namely: issuing bonds, initial public offering (IPO) of subsidiary shares, and loans from Islamic banks. The total targeted fund is more than IDR 3.4 trillion. The first funding option is the issuance of bonds worth IDR 1.7 trillion, which will be issued around July 2021. Then, IPO shares of a subsidiary, namely Adhi Commuter Properti (ACP) in November and December this year, with a target of IDR 1.7 trillion . The third funding option is a loan from an Islamic bank. (Investor Daily)

Indonesia’s International Investment Net Obligations Decrease. The International Investment Position (PII) in the first quarter of 2021 recorded a decrease in net liabilities, compared to net liabilities at the end of the fourth quarter of 2020. Indonesia’s PII in the first quarter of 2021 recorded a net liability of USD 268.6 billion or equivalent to 25.3% of Domestic Product Gross (GDP). This amount decreased from PII’s net liability position at the end of the fourth quarter of 2020 which was recorded at USD 281.0 billion or equivalent to 26.5% of GDP. The decrease in net liabilities was due to a decrease in the position of Foreign Financial Liability (KFLN) which was accompanied by an increase in the position of Foreign Financial Assets (AFLN). (Kontan)

Last Sukuk Auction 2Q21. Market participants may start to look closely at PBS027 (1.9-year); PBS017 (4.3-years); PBS030 (7.1-years); PBS029 (12.7-years); and PBS028 (25.3-years). The five Sukuk series will be offered at the Sukuk auction tomorrow. As for external sentiment, market participants responded positively to the release of inflation data that was in line with expectations, as well as the announcement of a new US infrastructure program plan. In the previous Sukuk auction, the need for short-term funds made the Government win PBS027 a lot.