The government only absorbed IDR 755 billion in the Sukuk auction yesterday. Meanwhile, incoming bids reached IDR 7.05 trillion. The nominal value won is below this target, making the government to implement the Green Shoe Option today. Yesterday, the government did not win at all the SPNS04042023 (New Issue) series.
Corporate Bonds
Wijaya Karya Releases IDR 2.5 Trillion Bonds and Sukuk. PT Wijaya Karya Tbk (WIKA) released Mudharabah bonds and sukuk with a total value of IDR 2.5 trillion. This bond is part of the Wijaya Karya Shelf-Registered Public Offering (PUB) with a total target of IDR 4 trillion to raise funds. The bonds released today are WIKA’s Sustainable Bonds III Phase I Year 2022 with a principal amount of IDR 2 trillion. (Kontan)
Domestic Issue
Government Debt Reached IDR 7,236.61 Trillion. Government debt is growing. TheMinistry of Finance (Kemenkeu) noted that at the end of August 2022, government debt reached IDR 7,236.61 trillion. In nominal terms, the government’s debt position increased by IDR 73 trillion compared to the debt position at the end of July 2022 which was IDR 7,163 trillion. Meanwhile, the ratio of government debt to Gross Domestic Product (GDP) is 38.30%. This figure increased slightly with the debt ratio at the end of July 2022 which was 37.91%. (Kontan)
Recommendation
External economic data. US job vacancies as of August, recorded their biggest decline in 2.5 years, and a below-expected Australian rate hike, raised expectations of a FFR hike of not +125Bps (Nov. +75Bps; Dec. +50Bps) through the end of the year. In addition to JOLTS Jobs Openings AS Aug. only 10 Million (Vs. Jul. 11.2 Million); RBA Cash Rate Target Oct. surprised the market with an increase of only +25Bps to 2.60% (Vs. Sept. 2.35%), from market forecast of +50Bps gain. The Reserve Bank of Australia is the first central bank to admit that now is the time for looser monetary policy, after the aggressive Hawkish in 2022.
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