Jakarta, CNBC Indonesia – The government through the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance again held an auction of Government Securities (SUN) on Tuesday (3/8/2021) today.
Today’s SUN auction is the first government securities auction in August 2021.
The securities being auctioned this time include the SPN12211104 series (reopening(SPN12220527)reopening), FR0090 (reopening), FR0091 (reopening), FR0088 (reopening), FR0092 (reopening), and FR0089 (reopening) through the auction system of Bank Indonesia.
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Photo: DJPPR Ministry of Finance RI SUN Auction August 3, 2021- – |
In today’s auction, the government won the same amount as in the previous SUN auction held on July 21, which was Rp 34 trillion or slightly larger than the indicative target set at Rp 33 trillion.
The incoming offers (incoming bids) in today’s auction again increased to Rp 107.8 trillion, from the previous auction on July 21 last amounted to Rp 95.6 trillion. This makes incoming bid in today’s auction it reached the second highest record in the history of issuance of SUN through auction and is the highest record for SUN auction in 2021.
SUN series FR0091 with a tenor of 10 years is still the most sought after by investors today, reaching Rp 39.58 trillion or around 37% of the total incoming bids auction today. Meanwhile, in terms of ownership, bid Today’s entry is still dominated by domestic investors with a proportion of 88.4%.
However, there was an increase in foreign participation from 7.6% in the previous auction to 11.6% of the total bid who entered the auction today.
Meanwhile, from the Weighted Average Yield (WAY), in today’s SUN auction there was a decrease in the WAY won for all series of state bonds offered by 1-13 basis points (bp) compared to the previous auction. The biggest WAY decline was in the 5-year tenor, reaching 13 bp compared to the previous auction.
There are major factors that influence its height bid auction today, including a decrease in yields (yield) US Treasury 10 years which reached the level of 1.15% and high liquidity in the domestic financial market. In addition, Bank Indonesia (BI) is still holding its benchmark interest rate (BI7DRRR) at the level of 3.5% in line with the still low level of domestic inflation.
Investors also responded positively to research released by international rating agencies, Moody’s Investors Service estimates that the yield (yield) Government bonds in Asia-Pacific have fallen far from their highest levels.
Moody’s predicts that the default rate (default) non-financial company for a period of 12 months, with a yield (yield) the high in Asia-Pacific will drop to 3.6% by the end of 2021, from the previous 7.4% at the end of 2020.
Therefore, on the basis of still increasing demand investors today, the government decided to continue to accept the results of today’s SUN auction.
The results of today’s SUN auction are as follows:
 Photo: DJPPR Ministry of Finance RISUN Auction August 3, 2021- – |
CNBC INDONESIA RESEARCH TEAM
(chd / chd)
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