-GOVERNMENT BONDS-
The SUN market at the beginning of the week closed mixed again, with the 10-year benchmark SUN FR0087 recording a yield of 6.42 percent, based on data from NH Korindo Sekuritas Indonesia. As well as starting to pay close attention to plans for the SUN auction today, market players are also anticipating the potential for another 10-year UST yield increase from the current 1.56% level. Investors are also watching the external sentiment of the Fed meeting to determine monetary policy on Tuesday and Wednesday, which previously was concerned about the potential for an increase in US inflation. As for other external sentiments, namely the surge in cases of the corona virus in a number of countries, which then prompted Joe Biden’s side to immediately supply raw material needs to produce the corona vaccine to India, Britain, France and Germany.
-CORPORATE BONDS-
BNI Credit Restructuring Reaches IDR 84.3 Trillion. Bank Negara Indonesia Tbk (BBNI) stated that until March 2021 the value of debt restructuring for debtors affected by Covid-19 would reach IDR 84.4 trillion. The restructured credit value amounted to 15% of the total BNI credit portfolio. This value is 17% -18% lower than the position of credit restructuring in December 2020. The total loan restructuring in March 2021, amounting to IDR 84.3 trillion, amounting to 15% of the total BNI portfolio, decreased by 17-18% compared to December 2020. The amount of debtors which has the potential to become non-performing loans (NPL) as of the first quarter of this year reached 2.1 percent. (CNBC Indonesia)
-MACROECONOMY-
1Q21 Investment Realization Reached IDR 219.7 Trillion. The Investment Coordinating Board (BKPM) recorded investment realization of IDR 219.7 trillion during the first quarter of 2021 (1Q21). The achievement grew by 4.3% YoY. In detail, the investment value comes from two sources. First, domestic investment (PMDA) is IDR 108 trillion, minus 4.2% YoY. Second, foreign investment (PMA) worth IDR 111.7 trillion, grew by 14% YoY. Investment realization in the first quarter of 2021 shows a recovery in investment, especially from foreign investment. Apart from being compared to the same period last year, the position of PMA in the first quarter of 2021 also grew 0.6% from the fourth quarter of 2020. (Kontan)
-RECOMMENDATION-
European Lockdown Sentiment and Fed Policy Colored SUN Auction. In this auction, market players have the opportunity to return to expect higher yields. Previously, the SUN market was closed mixed amid fears of a further increase in UST yield, following indications that inflation in this country would pick up. Meanwhile, the European lockdown sentiment was influenced by the re-increase in cases of the Covid-19 virus in Britain, France and Germany. However, the appreciation of the rupiah has the opportunity to withstand the pressure on the SUN market today. The Jakarta Interbank Spot Dollar Rate (JISDOR) reference rate was at IDR 14,489 / USD, or an increase of 0.4% compared to last week’s position. The appreciation of the rupiah was influenced by the realization of foreign investment or foreign investment (PMA) which grew 14% YoY.
