Foreign Outflows from SUN
Last week’s foreign inflows of nearly IDR14 trillion caused sovereign bonds (SUN) strengthened. Bank Indonesia (BI) stance of retaining 7DRR unchanged constituted as positive sentiment. BI’s commitment to maintaining an accommodative macroprudential policy by increasing the threshold range of macroprudential intermediation ratio (RIM) from 80%-82% to 84%-90% was another positive sentiment. The policy aims to support more banking loans, distributed to business sectors. On the other side, the Fed’s dovish statement also supported SUN’s robust movement.

SBSN Auction
At the auction of sharia sovereign bonds (SBSN) dated 03/19/2019, the Indonesian government secured funds of IDR8.98 trillion of the total incoming bid worth IDR29.69 trillion. The amount absorbed topped the indicative target of IDR8 trillion. SBNS with 2- year tenor, PBS014, secured the most substantial amount of IDR13.9 trillion.


Download full report HERE.