Government Bond Highlights
At the auction of Sharia Sovereign Bonds (SBNS) dated 09/18/2018, the government absorbed the funds of IDR4.903 trillion of the total incoming bid of IDR8.217 trillion. The amount absorbed is higher than the indicative target of IDR4 trillion. SPNS05032019, SBNS with 3-month tenor, obtained the biggest bid of IDR4.193 trillion. Indonesia Composite Bond Index (ICBI) finished higher by 1.30% to 232.43 last week.
Last week, sovereign bonds (SBN) finished on a high note after the tension arising from the trade war dissipated. Four series of sovereign bonds rallied. FR0075 with 20-year tenor snapped at its highest price, while its yields finished lower by 295 bps to 8.5584%. The rally in FR0075 is followed by the rally in other three benchmark bonds. Yields of FR0063 with 5-year tenor declined by 157 bps to 8.0468%, yields of FR0064 with 10-year tenor decreased by 251 bps to 8.0855%, and yield of FR0065 with 15-year tenor edged down by 190 bps to 8.6329%.
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