Foreign Inflows into Sovereign Bonds
Last week’s sovereign bonds (SUN) outflows were IDR11,057.8 trillion. Indonesian SUN stood out as an outlier to the downward revisions to emerging markets’ sovereign bonds. SUN strengthened as rupiah was appreciated due to benign inflation and estimated-lower 1Q19 current account deficits than that of 4Q18. Furthermore, global investors kept a close watch on possible yield inversion between 3-month and 10-month US Treasury. Now, foreign investors hold SUN worth IDR967.67 trillion or 38.12% of the existing SUN.

SBSN Auction
At the auction of sharia sovereign bonds (Surat Berharga Negara Syariah, “SBNS”) dated 04/02/2019, Indonesian authorities secured funds of IDR8.03 trillion from the total incoming bid of IDR18.4 trillion. The amount secured topped the indicative target of IDR8 trillion. SBNS with two-year tenor, PBS014, obtained the biggest bid of IDR6.6 trillion.


Download full report HERE.