Government Bond Highlights
At the Government Bond Auction (SBSN) dated on 10/30/18, the government absorbed the fund of IDR20 trillion from the total incoming bid of IDR59.5 trillion. The amount absorbed was higher than the indicative target of IDR10 trillion. The SBN, series FR0078, obtained the largest amount of bid amounting to IDR16.637 trillion. The Indonesia Composite Bond Index (ICBI) closed higher 1.29% to 236.97.
The bond market was in the rebound state last week. Varied positive sentiments — the GDP growth data and forex reserves — were factors putting the bond market in rebound mood. However, on the weekend, the government bonds’ prices were corrected due to fears of worsening current account deficit and global negative sentiments of the Fed’s hawkish statement uttered in last week’s FOMC meeting.
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