Selective Government in SUN Auction. Based on DJPPR data, the number of bids that entered the SUN auction was IDR 43.5 trillion, or higher than the previous auction of IDR 39.42 trillion. On the other hand, expectations of higher yields have made the government relatively selective in this auction. The government only won IDR 17 trillion, or below the indicative target of IDR 20 trillion. Meanwhile, the increase in yield on UST10Y to a level of 3% over the weekend, colored the movement of the SUN market yesterday.

Corporate Bonds
SAN Finance Issues IDR 750 Billion Bonds. PT Surya Artha Nusantara Finance will issue bonds with a total value of IDR 750 billion, in two series. Series A bonds have a principal value of IDR 150 billion. This note with a tenor of 370 days offers a fixed interest rate of 4.50% per annum. Series B bonds have a principal value of IDR 600 billion. This note with a tenor of 3 years offers a fixed interest rate of 7.05% per year. (kontan)

Domestic Issue
The increase in TDL in the 3,000 VA category will have an inflation effect. President Joko Widodo has approved the plan to increase electricity rates to customers of 3,000 VA and above. This increase was carried out amid a surge in energy commodity prices as a result of the Russo-Ukrainian war. This policy was carried out in an effort to share the burden of the government with the upper class society. (Kontan)

Investors are waiting for Cadev May data, in line with the current volatility of the rupiah exchange rate. In April, Indonesia’s Cadev was at the level of USD 135.7 billion.
Meanwhile, core inflation was under control, and the increase in FFR prices in June served as positive sentiment for Wall Street. The survey showed that core inflation, or US CPI Ex Food and Energy for May period was still under control, or at 0.5% MoM (Vs. Apr. 0.6% MoM) and 5.9% YoY (Vs. Apr. 6.2% YoY). Meanwhile, the sentiment for a 50 bps increase in the FFR June at the FOMC Meeting next week, has been anticipated by the market (price in), as the probability of a June FFR hike to 1.25% – 1.50% reaches 98%, based on CME FedWatch data.

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