Long Recovery in Domestic Economy, investors are interested in safe havens
All SUN benchmark series closed higher at the weekend, recording a decline in yield of 1.8 bps to 3.2 bps. A number of market players selective buy SBN of all tenors.
BI 7-DRRR Decision Price In, FR0086 Towards Par
Market players have anticipated BI’s decision to keep the benchmark interest rate at 4% level. Both SUN benchmarks and prospective benchmarks are not moving compactly, with the FR0086 price closing at the level of 99.83.
Anticipating Fixed 7-DRRR BI, Investors Interested in Long Tenors
Yields FR0080 and FR0083, respectively decreased by around 1.5 bps and 0.1 bps. Meanwhile, short and medium tenors experienced an increase in yield.
Long Tenor Amid Low Interest Rate Trends
Sukuk auction results recorded PBS025 and PBS028 bids to be the highest. There is still room for BI 7-DRRR cuts, making long-tenor bonds an investment option for obtaining capital gains.
Non-Total PSBB Supported SUN Early Week
Optimism of market players recovered, eyeing short and medium tenor SUN. Most of SUN was collected by investors yesterday, with the yield of FR0082 at the level of 6.89%.
Easing PSBB Sentiment, Encouraging SBN Strengthening
A number of market players softened towards the policy of reintroducing the Jakarta PSBB. This policy, considered not to be as strict as feared, kept the economy going even though it was limited.
Yield FR0082 Keeps Below 7%
Bond market stability is better as the portion of foreign investors is smaller. Based on data from the DJPPR as of 9 September 2020, the share of foreigners is currently only 28.2% or much smaller than the beginning of the year which was 38.6%.
Retail Sales Data Press SUN Benchmark
Bank Indonesia (BI) recorded that the July 2020 Retail Sales Index contracted 12.3% YoY, or continued contraction in the last 8 months.
Consumer optimism decreased, pressured the SUN auction bid
The bid for SUN auction was worth IDR 52.26 trillion, lower than the previous auction which reached IDR 78.34 trillion.
