Post-government bonds (SUN), the benchmark series recorded an increase in prices, or a decrease in yield in early trading week. The 10-year benchmark yield FR0087 is at 6.61% or only 491 bps difference compared to the US Treasury (UST) with the same tenor at 1.70%, according to Bloomberg data. NHKSI Research sees that the narrowing of the yield spread has the opportunity to make investors take profit taking or capital outflows on the SUN market. For the record, these two instruments usually record yield spreads in the range of 500 bps-520 bps. Data from the Directorate General of Financing and Risk Management (DJPPR) show that foreign investors carried out a capital outflow of IDR 20 trillion during March 2021.
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