Prices for the benchmark series of Government Securities (SUN) on Monday (12/10) were all closed higher, in line with the implementation of Large-Scale Social Restrictions (PSBB) DKI Jakarta which returned to the PSBB during the transition period.
Domestic sentiment, rejection of the Ciptaker Law is still a short-term sentiment for the SBN market. This has attracted investors to short and long tenor SBNs.
Yesterday, the movement of the bond market was influenced by the domestic situation. A number of people reject the Omnibus Law on Job Creation (Ciptaker).
The closing price of SUN on Wednesday was relatively weak. The rupiah is influenced by domestic sentiment on foreign exchange reserves (cadev) and the action against the Job Creation Act. In terms of yield,
Initial 4Q20 SUN auction, with FR0087 posting bids of up to IDR 15.4 trillion. This figure has a share of more than 31% of yesterday’s bid for a total of IDR 49.4 trillion.
Based on Bloomberg data, the FR0086 price closed at 99.26 or the lowest level since this series was published. The indicative target for SBN auctions, both SUN and Sukuk 4Q20, reached IDR 212.93 trillion or the highest compared to previous quarters.
Successive deflation has made domestic bonds attractive again, as they offer a high real return. On the other hand, this deflation also has the opportunity to make BI lower the BI 7-DRRR benchmark interest rate again.
SUN prices closed mixed with a tendency to strengthen, amidst low inflation. Nearly all government securities recorded lower yields, with the benchmark 10-year SUN dropping 0.6 bps.
Due to low interest in PBS003, the government only sold IDR6.4 trillion Government Sharia Bond (sukuk) on Tuesday (29/09) or under the indicative target of IDR10 trillion.
