SUN Market Mixed, amid government affirmation of recession opportunities in 3Q20
Market players responded to Minister of Finance Sri Mulyani’s statement that there was a risk that 3Q20 economic growth would be negative by -2%.
FR0083 and FR0076 Incoming Bid Increase
The 20-year and 28-year tenors posted incoming bids of IDR 7 trillion and 8.9 trillion, respectively. This figure is an increase compared to the previous auction of IDR 6.3 trillion and IDR 7.8 trillion.
FR0086 at Par
Investors are interested in these short tenors because they are more liquid, and not because the yields are higher like those offered in long tenors.
FR0086 and FR0087 Towards Par
These two series, which are projected to become benchmarks for 5-year and 10-year, have continued to record price increases since their publication on August 11, 2020.
Banks are interested in PBS027
The banking sector is interested in the short tenor of PBS027, has a relatively good yield and is adjusted to bank liquidity.
Financial Note Speech Encourages Strengthening of Short Tenors
A number of investors are releasing long tenor Government Securities (SBN), following President Joko Widodo’s financial note addressing the 10-year SBN interest rate at 7.29% in 2021.
Extension of PSBB Pressures the SUN Market
A number of market players have responded negatively to the DKI Jakarta government’s decision to extend the PSBB until 27 August.
Bond Market Strengthening amid Rupiah Depreciation
ICBI touched the level of 294.3 or strengthened 7.46% YtD. The current strengthening of the bond market is also driven by the entry of BI in the context of burden sharing policies.
BBCA – Provision as Key Performance Driver
BBCA recorded a decrease in net income to IDR12.2 trillion in 1H20 from the previous IDR12.8 trillion in 1H19.
