Thursday, 27/08/2009 14:29 WIB
Prices and yields predictable horizontal SUN
by: Irvin Avriano
JAKARTA (bisnis.com): Analysts predict bond price conditions and the yield of government debt securities (surat utang negara/SUN) will be relatively flat in trading today due to the difference between the yield values are still very thin and parallel to the natural yield.
"The condition of price and yield are still in line with the theoretical yield of making any movement today is still limited," said bond analyst Kim Eng Securities PT Dian Abdul Hakim in his research today.
He explained that the strengthening of the price of SUN on the third day this week that still had reinforcement of pressure in the range of relative yield 2 basis points (bp) to 3 bp, still not much different from the conditions of the previous day.
According to him, the yield for 10 years tenured instruments are still relatively stable at 10.5% level. In addition, he said, the auction of short-term instruments of BI, including the decline in yield of Bank Indonesia certificates (SBI) and SBI 1 month 3 months assessed the movement will have an impact on short-SUN bertenor in the secondary market.
This sentiment is reinforced by the domestic inflation of August 2009 rate waiting issued on Tuesday next week. Of the global bond market, the U.S. bond market also experienced a strengthening of prices and pushed yields of 1 bp - 2 bp. (tw)