Government Bonds
In addition to the decline in UST yields, market participants responded positively to the increase in the Consumer Confidence Index (IKK) for the June period which was at the level of 107.4. This figure increased compared to the previous month of 104.4, as well as recording the highest level since March 2020. However, the survey was conducted before the implementation of Emergency Micro PPKM. Thus, it is not known whether consumers are still optimistic, or even become pessimistic. Meanwhile, the 10-year UST yield fell from 1.32% to 1.25%.

Corporate Bonds
PT PP Oversubscribed Bonds and Sukuk. PT PP (Persero) Tbk (PTPP) stated that the offer of Shelf-Registered Bonds III and Shelf-Registered Sukuk I received a positive response from investors. This can be seen from the bookbuilding results, namely 1.8x over subscribed for bonds and 1.2x for mudharabah sukuk offered. PTPP issued debt securities in the form of bonds and sukuk worth a total of IDR 2 trillion. Shelf Registration Bond III Phase I Year 2021 worth IDR 1.5 trillion, and Shelf Registration Sukuk Mudharabah I Phase I Year 2021 amounting to IDR 500 billion. (Liputan 6)

Consumer Optimism Strengthens in June 2021. Data from Bank Indonesia (BI) shows that consumer confidence in the Consumer Confidence Index (IKK) in June 2021 reached 107.4 or increased from 104.4 in May 2021. The strengthening CPI was driven by improved consumer perceptions on current economic conditions and expectations of future conditions. Consumer perceptions of current conditions as indicated by the current Economic Condition Index (IKE), in June 2021, were recorded at 90.3. Although it is still in the pessimistic area or the index is below 100, this is an increase compared to 86.8 in May 2021. (Kontan)

Sukuk Auction Without PBS030. In the plan for the Sukuk auction on Tuesday (13/07), the government does not offer the PBS030 series. In fact, based on our observations, a number of parties are interested in the 7-year tenor of Sukuk. In addition to the SPNS14012022 (0.5-year), the government offers the PBS027 series (1.8-year); PBS017 (4.3-years); PBS029 (12.7-years); PBS004 (15.6-years); and PBS028 (25.3-year) in next week’s auction. In the short term, investors can look back at FR0086, FR0087, FR0090, and FR0091.