Indonesia’s Foreign Bond Investment
Last week, foreign investors spent the net buy of virtually IDR2.70 trillion on Indonesia’s bonds. Yield FR0078—sovereign bond (SUN) benchmark with 10-year tenor—declined 24 bps to 7.84%. The Fed’s dovish stance and the result of the US and China trade negotiation were drivers for prices of SUN. The Fed left its rates unchanged to create a health fundamental for the U.S. economy and accelerating growth. Meanwhile, Trump stated that to reach a comprehensive trade agreement between the U.S. and China, he will have talks with China’s President Xi Jinping. Foreign investors currently secured SUN worth IDR902.55 trillion or 33.71% of the total existing SUN.

Auction of Sovereign Bonds
At the auction of sovereign bonds (SBN) dated 01/29/2019, the government absorbed funds of IDR23.2 trillion of the total incoming bid of IDR48.6 trillion. The amount absorbed was higher than the indicative target of IDR15 trillion. SUN with 5-year tenor, namely FR0077, obtained the biggest bid of IDR15.61 trillion.


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