Foreign Capital Inflow Pushes the Highest ICBI This Year
Based on data from the Directorate General of Financing and Risk Management (DJPPR), foreign investor ownership was valued at IDR 950.2 trillion as of October 21, 2020.
The US Stimulus Agreement Boosted SBN Prices
The majority of Government Securities (SBN) prices closed higher. A number of market players responded positively to fiscal stimulus sentiment in the United States (US).
Investors are Again Interested in FR0087 and FR0080
The bids for the two series reached more than 56% of the total bid for the SUN auction yesterday valued at IDR 83 trillion. Investors are interested in the series of 10-year benchmark candidate FR0087,
Chinese Economic Data Positive, encouraging strengthening earlier in the week
Prices of all benchmark series Government Securities (SUN) closed higher on Monday (19/10). This increase continues the strengthening trend last week, in line with the positive data on China’s economic growth released yesterday.
Positive Trade Balance Sentiment, sustaining the market over the weekend
This is a further sentiment in trading on Friday (16/10), amid uncertainty regarding the US stimulus. Investors are interested in most of the Government Securities (SBN) at the weekend, with the 10-year tenor yield dropping nearly 6 bps to 6.76%.
Trade Balance Surplus Encourages SBN Strengthening
Most Government Securities (SBN) recorded lower yields, with the 10-year benchmark SUN FR0082 down 4.3 bps. Meanwhile, the 1-year tenor SUN dropped the deepest to the level of 3.37%.
IMF Projection Encourages Short Tenor SUN
International Monetary Fund (IMF) projects that the global economy in 2020 will experience a contraction of 4.4%. This projection is better than last April’s projection of a contraction of 4.9%.
Sukuk Auction Results | Deflation Holds Interest Rate
Bank Indonesia (BI) has set the BI Seven Days Reverse Repo Rate (BI 7-DRRR) at 4% for the October 2020 period, or has held the benchmark interest rate for 4 consecutive months.
Investors Are Interested in Long Tenors
In the 4Q20 Initial Sukuk auction on Tuesday (13/10) yesterday, the government managed to win IDR 11.9 trillion. This figure exceeds the indicative target set at IDR 10 trillion.
