SUN Benchmark Strengthens Ahead of the FOMC Meeting. Yield FR0091 fell nearly 6 bps to 7.35%; with FR0092 relatively flat at the level of 7.49%. Investors are selective buying, amid the projected FFR increase of only 75 bps, or under speculation that it will rise to 100 bps. Yesterday’s SUN market movement was also in the midst of the rupiah exchange rate which was still maintained around the level of IDR15,000/USD.
Corporate Bonds
EXCL Issues Bonds and Sukuk Total IDR 3 Trillion. PT XL Axiata Tbk (EXCL) will issue Shelf-Registered Bonds II Phase I Year 2022 and Shelf-Registered Sukuk Ijarah III Phase I Year 2022 by offering IDR 1.5 trillion each. So that the total value of bonds and sukuk issuance reached IDR 3 trillion. This issuance is part of the Public Sustainable Bonds and Sukuk Program with a target of IDR 5 trillion each. This Sukuk Ijarah program is the offering with
the largest value ever issued by XL Axiata. (Kontan)
Domestic Issue
Government Gains IDR 1.74 Trillion. The government has conducted an additional auction (greenshoe option) for State Sharia Securities (SBSN) on Wednesday (27/7/2022). The total incoming bids were booked at IDR 1.74 trillion for the four SBSN series which are project based sukuk (PBS). This additional auction is a follow-up to the SBSN auction on Tuesday (26/7/2022). Additional auction results show that all series were taken by the government, PBS031, PBS032, PBS029, and PBS033. Meanwhile, the total bids that entered the auction yesterday amounted to IDR 10.76 trillion. (Bisnis Indonesia)
Recommendation
Increase in FFR 75 Bps Price In. Market participants have anticipated an increase in FFR 75 bps, as can be seen from the maintained movement of the Rupiah. Meanwhile, DXY fell to a level of 106.45 yesterday, after touching a high of 108.54 in mid-July.
Download full report HERE.
