Government Bonds
Investors are looking forward to the announcement of the continuation of the Emergency Community Activity Restrictions (PPKM) policy, making the SUN market move mixed at the beginning of the week. Market participants are also keeping a close eye on high inflation in the United States (US), as June inflation reached 5.4% YoY. Meanwhile, the extension of the PPKM has the opportunity to push back the bidding of benchmark candidates at the auction of Government Securities (SUN) today. The government again offers FR0090, FR0091, FR0088, FR0092, and FR0089.

Corporate Bonds
Corporations Are Still Enthusiastic in Issuing Debt Instruments, Multifinance and Superior Construction. The Indonesian Securities Rating Agency (Pefindo) stated that corporations remain enthusiastic in issuing debt securities in the midst of the Covid-19 pandemic. This can be seen from the 40 companies that submitted rating mandates with emission plans of IDR 59.1 trillion. Of this value, the largest securities issuance plan comes from the parent company sector, which is IDR 13 trillion. However, there is only one company from the sector. (Bisnis Indonesia)

Credit Disbursement Increases in 2Q21. Bank Indonesia (BI) said the increase in credit was evident from the Weighted Net Balance (WNB) of new loan requests which amounted to 53.9%. SBT in the quarter under review was up from 30.4% in 1Q21. New credit growth is indicated for all types of credit, highest in working capital loans, followed by consumption loans, then investment loans. (Kontan)

Attractive Yields FR0090, FR0091, and FR0092. Market participants have the opportunity to respond positively to the attractive yields of the three series in today’s SUN auction. Previously, the three new series posted high bids in the previous auction, in the range of IDR 15 trillion to IDR 34 trillion. In this auction, also in the midst of waiting for the release of the Bank Indonesia (BI) 7-DRRR benchmark interest rate data for July. Tomorrow, BI will release the BI 7-DRRR data which is projected to remain at the level of 3.50%.