At the conventional bond auction on 26-Aug, the total incoming bids reached Rp126tn, the second highest this year, though below the record Rp162.3tn on 12-Aug and our forecast of Rp162tn (range: Rp157tn 167tn), but still higher than the average incoming bids YTD of Rp87.3tn. Similar to the previous bond auction, the demand was led by the 5-yr FR109, which attracted Rp54tn (42.9% of total bids), followed by the 10-yr FR108 (Rp28tn) and the 15-yr FR106 (Rp16.2tn). As expected, non-competitive bids declined (to Rp49.6tn or 56.3% of total bids vs. Rp16.3tn or 30.2% of total bids prior) as the FR109 is now actively traded in the secondary market, reducing reliance on this channel; note that this might inflate bid sizes, given historically low allocation ratios for non-competitive bids.<\/p>\n\n\n\n
Onshore investors remained dominant with Rp100.7tn of bids (vs. Rp128.2tn in the prior auction, YTD avg. of Rp70.6tn), accounting for nearly 80% of the total bids. Offshore demand stood at Rp25.3tn (vs. Rp34.1tn prior, YTD avg. of Rp19.1tn), keeping the foreign share stable at ~20% of the total bids. Meanwhile, the foreign awarded-to-bid ratio improved to 14.4% (vs. 10.2% prior), though still below the YTD average of 33.3%. This often implies potential follow-up buying in the secondary market, thus supporting bond prices.<\/p>\n\n\n\n
The government issued Rp30tn, slightly below the previous Rp32tn but above the initial Rp27tn target, signaling ample cash buffers (SAL). The weighted cost of funds declined to 6.24% (vs. 6.35% prior), while the average tenor lengthened slightly to 12.84 years (vs. 12.28 years). Thus, the YTD gross issuance has reached Rp933.5tn, or 68% of our full-year target (based on a -2.78% deficit-to-GDP ratio).<\/p>\n\n\n\n
The robust auction demand lifted government bond prices across the curve. According to Bloomberg, the 5-yr FR104 closed at 103.28 (yield: 5.72%, -2.0 bps), the 10-yr FR103 at 103.19 (yield: 6.31%, -0.4 bps), the 15-yr FR106 at 104.17 (yield: 6.68%, -0.8 bps), and the 20-yr FR107 at 103.33 (yield: 6.82%, -0.5 bps). In USD debts, the 5-yr global bond (Mar-2031) was little changed at 87.39 (yield: 4.44%, +0.4 bps), while the 5-yr CDS widened slightly to 67.1 bps (+1.7 bps). In addition, foreign investors recorded a strong net buy, totaling Rp3.05tn, which almost all came from non-benchmark series.<\/p>\n\n\n\n
According to IDX s OTC trading report, Indonesian government bond trading activity rebounded strongly on Tuesday (26-Aug), with total volume surging to Rp46.5tn (vs. Rp34.0tn on 25-Aug), supported by strong demand at the government bond auction held the same day. The figure exceeded the prior week s daily average of Rp39.0tn and remained well above both the 2025 year-to-date (YTD) daily average of Rp31.0tn and the 2024 daily average of Rp21.7tn. The 5.6-yr FR0109 series (maturing on 15-Mar-31) led market flows, recording Rp6.2tn in trading volume. Its price advanced to 100.68 (+0.13%), pushing the yield lower to 5.73% (-2.69 bps). This was followed by the 15-yr FR0106 series (maturing on 15-Aug-40), which recorded Rp4.5tn in trading volume. The bond s price inched higher to 104.22 (+0.02%), compressing the yield slightly to 6.67% (-0.18 bps).<\/p>\n\n\n\n
On the flow side, based on the latest DMO data (as of 25-Aug), foreign ownership of government bonds was stable at Rp948.2tn (14.85% of outstanding). YTD, BI has been the largest net buyer (+Rp123.3tn), followed by onshore banks (+Rp72.1tn), foreign investors (+Rp71.6tn), insurance and pension funds (+Rp33.6tn), retail (+Rp29.4tn), other investors (+Rp8.5tn), and mutual funds (+Rp6.1tn).<\/p>\n\n\n\n
Meanwhile, the JCI fell -0.27% to 7,905.76, despite the turnover surging to Rp45.8tn, which was the highest daily turnover YTD (vs. Rp14.2tn average), with strong foreign inflows of +Rp2.4tn (vs. +Rp0.73tn prior), trimming the YTD net outflows to Rp49.3tn. Regionally, almost all Asian equity markets were also mostly weaker; the Hang Seng Index plunged by -1.18% to 25,524.92 (YTD: +26.56%), while the Nikkei 225 Index dropped by -0.97% to 42,394.40 (YTD: +7.99%). The rupiah also weakened by -0.25% to Rp16,290\/USD on Tuesday (YTD: -1.13%).<\/p>\n\n\n\n
Domestic Corp Bond Market<\/strong><\/p>\n\n\n\n On the corporate side, trading activity also strengthened on Tuesday (26-Aug), with total volume rising to Rp3.4tn (vs. Rp2.2tn on 25-Aug). The figure surpassed the prior week s daily average of Rp3.1tn, though it remained below the 2025 YTD average of Rp3.91tn, while staying comfortably above the 2024 daily average of Rp2.05tn.<\/p>\n\n\n\n The PRTL02CCN2 series (maturing on 17-Dec-26), rated AAA(idn), led the segment with Rp800bn in trading volume. The bond s price stood at 100.08, yielding 6.30%. This was followed by the PALM02BCN5 series (maturing on 26-Aug-28), rated idA, which made its secondary market debut with Rp351bn in trading volume. The bond traded at 100.00, yielding 9.00%.<\/p>","protected":false},"excerpt":{"rendered":" At the conventional bond auction on 26-Aug, the total incoming bids reached Rp126tn, the second highest this year, though below […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[7],"tags":[],"class_list":["post-5774","post","type-post","status-publish","format-standard","hentry","category-market-research"],"_links":{"self":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/5774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/comments?post=5774"}],"version-history":[{"count":1,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/5774\/revisions"}],"predecessor-version":[{"id":5775,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/posts\/5774\/revisions\/5775"}],"wp:attachment":[{"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/media?parent=5774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/categories?post=5774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/himdasun.or.id\/en\/wp-json\/wp\/v2\/tags?post=5774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}