Investors are interested in the 10-Year SUN Benchmark candidate. FR96 recorded an entry bid of up to IDR6.8Trillion or the highest compared to FR95, FR98, FR97 and FR89 in yesterday’s SUN auction. The liquidity factor and offers coupons of up to 7%, make investors interested in this series. On the other hand, yield expectations are too high, making the Government selective in winning this series, or FR96 only won for IDR1.6Trillion or a Bid to Cover ratio of 2.9x.
Corporate Bonds
FIF Group Bonds Earn AAA Rating. Several bonds owned by PT Federal International Finance (FIF Group) have received AAA ratings from PT Fitch Ratings Indonesia (Fitch) with a stable outlook. At least, there are six bonds that get this rating. (Kontan)
Domestic Issue
The Government Withdraws New Debt of IDR 8.2 T. Rising fear of global recession is causing Indonesia’s financial market to collapse. The government on Tuesday (11/10/2022), held a SUN auction for seven series, namely: SPN03230111 (New Issuance), SPN12231012 (New Issuance), FR0095 (Reopening), FR0096 (Reopening), FR0098 (Reopening), FR0097 (Reopening), and FR0089 (Reopening). Of the number of incoming bids, the government only took IDR 8.22 trillion which is the lowest in the last 11 auctions. (CNBC Indonesia)
Recommendation
BI 7DRRR at the level of 4.25% is not effective; as the rupiah depreciated more to the level of IDR15,350/USD. Strong Dollar again depresses the rupiah exchange rate, with DXY holding on to a high level of 113, responded negatively by investors.
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