Government Bond Highlights
At the auction of State Sharia Sovereign Bonds (SBSN) dated 08/07/18, the Indonesian government absorbed the funds of IDR5.17 trillion from the total incoming bid of IDR10.899 trillion. The amount absorbed was higher than the indicative target of IDR6 trillion. SPNS08022019, the sovereign bonds (SUN) with 6-month tenor, obtained the largest amount of bid of IDR3.616 trillion. Indonesia Composite Bond Index (ICBI) nudged up 0.91% to 237.18.
The sovereign bonds prices rallied last week after the 2Q18’s economic growth soared to its highest level of 5.27% y-y since the 2Q14. However, the U.S. unemployment data curbed the rally. The Indonesia sovereign bonds endured a slight correction on Friday’s trading session dated August 10th, 2018. The 10-year and 20-year benchmark series endured the biggest correction as their yields edged up by 5bps and 4 bps to 7.67% and 8.1%, respectively.
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