BI still has room to hold BI 7DRRR. A number of domestic economic data supported the market yesterday, such as: S&P Global Indonesia Manufacturing PMI in July which continued to expand or at the level of 51.3 (Jun. 50.2); and July’s Core CPI YoY of 2.86% (Jun. 2.63%) or still within BI’s target of 2%-4%, making BI still have room to hold back the BI 7DRRR. On the other hand, investors are still keeping an eye on the July YoY CPI Headline which reached 4.94%, exceeding the upper limit of BI’s 4.5%-4.6% target.
Corporate Bonds
SMF Ready to Pay Off Bonds. PT Sarana Multigriya Finansial (Persero) or SMF has prepared funds for repayment of principal and interest on Shelf-Registered Bonds V
Phase II Series A Year 2019 with a principal of Rp. 1.42 Trillion with an interest of Rp. 27.7 billion which matures on August 28, 2022. The Company also confirms that the bonds issued by SMF have an idAAA rating obtained from PT Pemeringkat Efek Indonesia (Pefindo). (Kontan)
Domestic Issue
IIndonesia Inflation Jumps to 7-Year High. Indonesia’s inflation accelerated to a sevenyear high driven by soaring food prices, data showed on Monday, sparking calls for an interest rate hike, though the central bank governor signaled he was unperturbed as core inflation remained low. At 4.94%, the July inflation rate was the highest since October 2015, reflecting rising prices of food, household fuel and airfare, and hikes in some electricity tariffs. (Reuters)
Recommendation
The increase in Headline Inflation colored the SUN auction. The government again held an auction of Government Securities (SUN) Tuesday, setting an indicative target of IDR 15 trillion to IDR 22.5 trillion, offering seven series. The seven series are: SPN03221102, SPN12230413, FR0090, FR0091, FR0093, FR0092, and FR0089.
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