The price of Government Bonds (SUN) at the end of the week rose, in line with the decline in UST yield to the level of 1.45%. The US bond market is moving higher, amid the US May 2021 inflation rate of 5% YoY, or the highest level since 2008. NHKSI Research sees that market participants have anticipated this, and the increase in US inflation is only temporary. The decline in UST yields is usually also followed by a decline in the US dollar index. Over the weekend, the rupiah strengthened 0.4% to IDR 14,189/USD in the spot market. Meanwhile, the Bank Indonesia (BI) middle rate strengthened 0.2% to IDR 14,206/USD. Benchmark yields FR0086 and FR0087, respectively, closed at 5.31% and 6.34% based on NHKSI Fixed Income data.

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