Foreign Inflows into Sovereign Bonds
Sovereign bonds (SBN) attracted IDR2,802.4 trillion worth of foreign funds. Indonesia Composite Bond Index (ICBI) climbed up 0.93% to close at 262.82. SBN markets rallied since May 31, 2019. At last week’s a few early days, prices of SBN rallied as investors positively responded to June’s inflation surging by USD3.5 billion to USD123.8 billion. Of note, IDR991.06 trillion worth of foreign funds to flow into SBN portfolios; the amount was equal to 38.9% of IDR2,547 trillion worth of the total existing SBN.
At SBN auction on Tuesday (07/02), the pace of inflows from the incoming bid of IDR62.09 trillion was IDR22.15 trillion. The inflows topped the indicative target of IDR15 trillion with FR0078, SBN with 10-year tenor, attained the largest bid of IDR17.03 trillion.
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