Government Bond Highlights
At the auction of government’s sharia bonds (Surat Berharga Negara Syariah, “SBNS”) dated 09/16/2018, the government absorbed funds of IDR5.225 trillion from the total incoming bid of IDR13.894 trillion. The amount absorbed was a lot higher than the indicative target of IDR4 trillion. SBNS with one year tenor, namely SPNS03042019 obtains the biggest bid of IDR4.763 trillion. Indonesia Composite Bond Index (ICBI) closed lower by 0.51% to 229.44.

The government bonds market rallied last week. The government bonds consistently hiked until weekends despite varied negative sentiments looming the domestic market. China’s ownership over the U.S. treasury bonds settling at much the lowest level since a year ago sparks fears of unresolved disputes between the two countries, for example.


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