Government Bond Highlights
At the auction of sharia sovereign bonds (SBSN) dated 09/04/2018, the Indonesia government absorbed IDR4,805 trillion from the total incoming bid of IDR10.48 trillion. The amount absorbed was higher than the indicative target of IDR4 trillion. The government bond (SUN) with 6-month tenor, SPNS05032019, obtained the biggest bid of IDR3.801 trillion. Indonesia Composite Bond Index (ICBI) closed lower by 1.51% to 229.02 last week.
The government bond market was bearish last week. The bearish mood aligned with the rupiah depreciation nearing its psychology level of 15,000 per U.S. dollar. Indeed, the depreciated rupiah sent the yield of FR0064 with
10-year tenor to almost hit its psychology level of 8.5%. However, previous week’s last trading session, the government bonds rallied slightly. The positive sentiment stemmed from the government’s concerted endeavor to cushion the rupiah depreciation.
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