Government Bonds
Yield of 10-year Government Bonds (SUN) closed higher. Yesterday was the first trading day of the SUN market during the Emergency Micro PPKM period. However, if the effectiveness of this PPKM has not been achieved, there is the potential for an extension of the Emergency Micro PPKM, which again threatens the economic recovery. Yesterday’s yield movement was also in the midst of waiting for the release of data on Foreign Exchange Reserves (Cadev) and the Consumer Confidence Index (IKK).

Corporate Bonds
OCBC NISP Ready to Pay Maturity Bonds. Bank OCBC NISP Tbk has prepared funds to pay the repayment of the Shelf-Registered Bonds III Phase 1 Year 2018 Series C amounting to IDR 342 billion which will mature on July 6, 2021. These notes have been issued by Bank OCBC NISP since July 6, 2018. Referring to Pefindo data, this bond has an interest rate of 7.75% with a 3-year tenor. With the settlement of the obligation, since Tuesday (6/7), the securities will no longer be listed on the stock exchange. Also cannot be traded through the IDX. (Kontan)

The State Budget Deficit Widens to IDR 283.2 Trillion. The Minister of Finance said the State Budget (APBN) deficit reached IDR 283.2 trillion during the first semester of 2021. The figure widened from the same period last year, IDR 257.8 trillion. The deficit occurs because the realization of revenue is lower than government spending. It was noted that the state pocket was only filled with IDR 886.9 trillion until the end of the first semester of 2021. (CNN Indonesia)

Attractive Coupons FR0090, FR0091 and FR0092. New Issue FR0090 (5.8-year) auction results; FR0091 (10.8-years); and FR0092 (21-year) today, have the opportunity to offer relatively attractive coupons, after the increase in SUN yields in the last few days. Previously, market participants observed the effectiveness of the implementation of the Emergency Micro PPKM, which had an impact on the recovery of the domestic economy. On the other hand, the three series will have tenors of around 5-years, 10-years, and 20-years next year, leading us to speculate that the three series have the potential to become the benchmark SUN series for 2022.