The government set the FR98 coupon at 7.125%. Based on data from DJPPR, the Government managed to obtain funds worth IDR 19 trillion, from a total of seven series at the SUN auction yesterday. The government offers SPN03221214, SPN12230914, FR95, FR96, FR98, FR97, and FR89. Meanwhile, the government set the FR98 New Issue coupon at 7.125%.

Corporate Bonds
Public Offering of IDR 3 Trillion SMF Bonds. PT Sarana Multigriya Finansial (Persero) or SMF will hold a public offering of Sarana Multigriya Finansial Phase III of 2022 Sustainable Bonds VI on 15-16 September 2022. The bonds to be offered have a principal amount of IDR 3 trillion with a fixed interest rate of 6, 95% per annum and a tenor of 5 years. (Bisnis Indonesia)

Domestic Issue
Indonesia Pockets IDR 19 T from Auction of 7 Debt Instruments. The government through the Ministry of Finance (Kemenkeu) pocketed fresh funds of IDR 19 trillion from the auction of seven debt securities as of September 13, 2022. Furthermore, the two SPN series are SPN03221214 and SPN12230914. Then, five FR series FR0095, FR0096, FR0098, FR0097, and FR0089. Meanwhile, the total incoming bids amounted to IDR 52.05 trillion. (CNN Indonesia)

The negative sentiment of aggressive Hawkish continued. Investors are watching the speculation of a +100Bps increase in September FFR at the FOMC Meeting next week. More detail, CME FedWatch starts projecting a +100Bps September FFR increase probability of 18%, from the previous +75Bps 82% increase, responding negatively to the August YoY US Core Inflation rate at 6.3% (Vs. Surv. 6.1%; Jul. 5.9%). Core Inflation is the Fed’s benchmark in setting the FFR amount. The potential for further aggressive Hawkish September FFR hikes of +100Bps occurs after June and July rose +75Bps each, driving US 3Q22 GDP to the brink of recession. This can be seen from the widening of the UST2Y Yield Inversion spread (3.76%) Vs. UST10Y (3.41%) from 20Bps to 35Bps a week.

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