Government Bond Highlights
At the government bond (Surat Utang Negara, “SUN”) auction dated 03/27/2018, the Indonesian government absorbed the fund of IDR20.7 trillion from the total incoming bid of IDR35.57 trillion. The amount absorbed was bigger that the indicative target of IDR17 trillion. FR0064 — SUN with 10-year tenor — obtained the biggest bid of IDR15.28 trillion. Indonesia Composite Bond Index (ICBI) nudged up by 0.37% into 244.2 in last week.
The jitters of the trade war between the U.S. and China loomed; still, China and the U.S.’s manufacture data of March to be released on Monday 04/02/2018 is projected to get no impact.
China’s manufacture activities in March is projected to grow further because its authorities lifted winter pollution restrictions. Meanwhile, in the U.S., the Fed’s projection of the higher economic growth outlook notes the further trend of bullish manufacture in the U.S.
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