Bond Market Review (Wednesday,05/14)
Government Debt Securities (SUN) prices weakened in yesterday’s trading session. Based on data from PHEI, the yield on the 5-year SUN benchmark (FR0104) rose by 5 basis points (bps) to 6.59%, while the yield on the 10-year benchmark (FR0103) also increased by 5 bps to 6.89%. Bloomberg data showed that the 10-year SUN yield curve (GIDN10YR) rose by 3 bps to 6.89%. The current level of the 10-year SUN yield curve remains in line with our estimated range for this week, which is between 6.81% and 7.02%.
The outright traded transaction volume of Government Securities (SBN) was recorded at Rp29.2 trillion yesterday, higher than the previous day’s volume of Rp20.3 trillion. FR0103 and FR0104 were the two most actively traded series in the secondary market, with transaction volumes of Rp8.1 trillion and Rp3.8 trillion, respectively. Meanwhile, the outright trading volume of corporate bonds stood at Rp4.9 trillion.
Data from DJPPR showed that the total incoming bids at yesterday’s Government Sharia Securities (SBSN) auction reached Rp27.3 trillion, down from Rp32.7 trillion in the previous auction on 29 April. Out of the seven series offered, the Government set the total awarded amount in line with the indicative target of Rp10 trillion.
Bloomberg data showed that the Rupiah appreciated by 0.39% against the US Dollar, moving from Rp16,627/US$ on Tuesday to Rp16,562/US$ yesterday.
Bond Market Preview (Thursday,05/15)
Global indicators reflected mixed sentiment compared to the previous day, with rising US Treasury (UST) yields alongside a decline in Indonesia’s Credit Default Swap (CDS). The 5-year UST yield curve rose by 5 bps to 4.17%, and the 10-year UST yield curve increased by 4 bps to 4.53%. Meanwhile, Indonesia’s 5-year CDS continued its decline by 2 bps to 83 bps, indicating an improvement in global investor perception regarding Indonesia’s creditworthiness.
Given the above market conditions, we anticipate a potential increase in volatility in the prices and yields of Rupiah-denominated Government Securities. Based on yield curve valuation, the following bonds may be attractive to investors: FR0094, FR0099, FR0052, FR0068, FR0103.
Kindly find the link to our Fixed Income Daily Market View for May 15, 2025 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=bb294116-0c04-4788-9673-f8e2b7f13eb2
ENG
https://research.bnisekuritas.co.id/doc-view?z=061ab8d2-a341-4674-ad8c-a5781ae11919
