Government Bond Highlights
At the last week’s auction of government bonds (SBN) dated 09/12/2018, the government absorbed the funds of IDR16.210 trillion of the total incoming bid of IDR36.885 trillion. The amount absorbed was higher than the indicative target of IDR10 trillion. SBN with 3-month tenor, namely SPN03181213, got the highest bid of IDR3.801 trillion. Indonesia Composite Bond Index (ICBI) closed higher by 0.03% to 229.08.
The SBN market closed higher last week. The three series, namely FR0063 with 5-year tenor, FR0064 with 10-year tenor, FR0075 with 30-year tenor respectively rallied. Yield of FR0063 declined 12 bps to 8.2038%; FR0064 declined by 13 bps to 8.3368%; and FR0074 declined by 7 bps to 8.8536%. On the other side, the yield of benchmark series, FR0065 with 15-year tenor, nudged up by 3 bps to 8.6329%. SBN’s last week rally was attributable to the subdued trade war tension between the U.S. and China after the U.S. proposed trade talks to China’s authorities.
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