The placement of these funds will facilitate the distribution of Regional Development Bank (BPD) loans, in line with the implementation of the National Economic Recovery (PEN) program.
Bond market movements are in line with the policies of the Ministry of Finance (Ministry of Finance) and Bank Indonesia (BI) who started the burden sharing concept.
A number of investors responded positively to the attractive yield spread between FR0082 and UST 10-years which reached 640 bps.
This figure is 20 bps lower than our projections, in line with the reduced risk profile of investing in Indonesia. Previously, NHKSI Research had projected that the PBS028 reward rate would be in the range of 8.15%-8.20%.
Sentiment of the rupiah exchange rate colored the beginning of the week’s trading. Rupiah weakened 0.56% to IDR 14,785/USD.
The Central Statistics Agency recorded a balance of trade in the 1H20 period with a surplus of USD 5.50 billion. This figure is better than the same period the previous year which recorded a deficit of USD 1.87 billion.
Decision of the Bank Indonesia Board of Governors’ Meeting (BI) cut the 7-day reverse repo rate (BI 7-DRRR) in July by 25 bps to 4% , positively responded by bond market players.
Fitch Rating sets the final BBB rating for Indonesian Samurai Bonds worth 100 billion yen issued early July 2020. This stipulation replaces the expectations of BBB(EXP), and is in line with Indonesia’s long-term foreign currency ratings from BBB with a stable outlook.
Based on data from Directorate General of Budget Financing and Risk Management, results from bond auction on Tuesday (07/14), recorded incoming bids of IDR 61.2 Trillion.
