Retail Sales Data Press SUN Benchmark. Bank Indonesia (BI) recorded that the July 2020 Retail Sales Index contracted 12.3% YoY, or continued contraction in the last 8 months. Meanwhile, external sentiment came from the US, which was launching attacks on commodities from China. US Customs and Excise blocks cotton imports from China’s Xinjiang region. In fact, the US is also blocking its derivative products, including cotton yarn, textiles and apparel. All benchmark SUN recorded an increase in yield of more than 1 bps, with FR0082 closing at 6.85% level. Meanwhile, FR0086 and FR0087 recorded yield increases of 3.5 bps and 3 bps to 5.49% and 6.75%, respectively.

Tower Bersama Officially Records New Bonds. Tower Bersama Infrastructure Tbk. (TBIG) officially listed Sustainable Bond IV Tower Bersama Infrastructure Phase I 2020 of IDR 700 billion. The company targets to raise IDR 7 trillion in funds within two years. This amount consists of series A with an issuance value of IDR 231 billion coupons of 6.3% with a tenor of 370 days and series B of IDR 469 billion of coupons of 8.0% with a tenor of 3 years. Interest for the bonds, which have received an AA- rating from Fitch Indonesia, will be paid quarterly. Meanwhile, the proceeds from this offering will be used for the partial payment of TBIG II Phase III 2017 Bonds with a fixed interest rate of 8.4% which will mature on September 19, 2020. For the record, as of June 30, 2020, the company’s total loans, if loans denominated in US Dollars that have been hedged, measured using the hedged exchange rate, are IDR 22.56 trillion and total senior loans (gross senior debt) are IDR 10.35 trillion. (Bisnis Indonesia)

New 2Q20 Tax Revenue Realization 32.37%. The Ministry of Finance (Kemenkeu) reports the realization of the Directorate General of Tax’s performance achievements up to 1H20. Realization of tax revenue up to 2Q20 or the period April – June 2020 reached IDR 531.71 trillion. When compared with the target in Presidential Decree 72/2020, the achievement of tax revenue in Quarter II was around 44.35%. Meanwhile, when compared with the 2020 State Budget target, the achievement is around 32.37%. Meanwhile, the budget realization up to September 4, 2020 was IDR 4,008.34 billion or 60.33%. The total realization was divided into IDR 2,116.85 billion for personnel expenditure, IDR 1,598.33 billion for goods expenditure and IDR 293.16 billion for capital expenditure. (Kontan)

Negative Sentiment PSBB Jakarta. The policy of the DKI Regional Government to implement a total PSBB starting September 14, 2020, can be sure to make the 3Q20 domestic economy contract again. The bond market will respond to this with a correction, pending another positive sentiment. Starting next week, the DKI Regional Government’s policy will close most office activities. The rupiah exchange rate closed down 0.23% at IDR 14,799 / USD on the spot market.

-REVIEW (Sept. 9, 2020)-
FR0081 (5yr): +1.6 Bps to 104.21 (5.48%)
FR0082 (10yr): +1.1 Bps to 101.05 (6.85%)
FR0080 (15yr): +1.1 Bps to 101.05 (6.85%)
FR0083 (20yr): +0.3 Bps to 100.92 (7.40%)

FR0086 (6yr): +3.5 Bps to 100.03 (5.49%)
FR0087 (11yr): +3.0 Bps to 98.08 (6.75%)

UST 2yr: +0.005 point to 0.14%
UST 5yr: +0.014 point to 0.28%
UST 10yr: +0.022 point to 0.70%
UST 30yr: +0.035 point to 1.45%
German Bund 10yr: +0.032 point to -0.46%
UK Gilt 10yr: +0.049 point to 0.23%

CDS 2yr: +1.50% to 34.01
CDS 5yr: +0.31% to 89.24
CDS 10yr: +1.08% to 154.60

WTI: -7.56% to USD36.76/Barrel
BRENT: -5.30% to USD39.78/Barrel
Source: Bloomberg