Government Bond Highlights
Indonesia Composite Bond Index (ICBI), last week, closed slightly lower by 0.16% to 238.60. The decline in the government bonds (SUN) aligns with the correction in bonds markets of emerging economies. The last week correction of bonds prices was triggered by investors jitter of the U.S. economic recession, worsened by Trump’s threat related to the funding of the U.S.-Mexico border. The rally in the dollar index due to the release of the Producer Price Index (PPI) and the U.S. retail sales also suppressed last week’s market movement. However, Chinese’s stance of cutting imports tariffs imposed on the U.S. automotive to 15% is capable of sending SUN to rally.
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