Indonesia’s Foreign Bond Investment
Last week, foreign net buy on sovereign bond (SUN) was at IDR6.37 trillion. Yield FR0078 (benchmark SUN with 10-year tenor) slightly declined to 7.84%. In the initial week, the rising prices of SUN was attributable to the higher-then-estimated growth in Indonesia’s economy. The 2018 economic growth of 5.17% outpaced the estimated figure of 5.15%. But, profit taking slowed foreign net buy on SUN. Foreign investors currently hold IDR925.68 trillion of SUN or 37.99% of the total existing SUN.
Sovereign Debt Notes Auction
At the auction of sharia sovereign debt notes (SBNS) dated 02/06/2019, the government secured funds of IDR10.1 trillion from the total incoming bid of IDR21.6 trillion. The amount absorbed was higher than the indicative target of IDR8 trillion. SUN with two-year tenor, PBS014, won the biggest bid of IDR5.60 trillion.
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