Foreign Investment in SBN
Last week’s foreign inflows into the Indonesian government bonds (SBNs) valued at IDR9,805 trillion. Indonesia Composite Bond Index (ICBI) notched up 0.70% to close at 260.28. On Monday (24/06), the prices of SBNs were weak, ending its rally since early of June as the shooting of US drown triggered the flare-up of between the U.S and Iran. Even the trade balance surplus of USD210 million failed to cushion the weakening prices. On Tuesday (25/06) prices of SBNs were rebounding along with easing tensions between the U.S. and China ahead of the set talks between Trump and Xi at G-20 in Japan. Until the late last week, prices of SBNs closed higher as the Constitutional Court found no evidence of Prabowo-Sandi’s petition against 2019’ massive electoral fraud.
At SBNs’ auction on Tuesday (06/25), the Indonesian government attained IDR8 trillion from the total incoming bid of IDR40.19 trillion. The amount gained was higher than the indicative target of IDR6 trillion. PBSO14, Indonesian sharia government bonds (SBNSs) with 2-year tenor, obtained the biggest offer of IDR17.332 trillion.
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