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Tuesday, January 18, 2011

Government bond price rebounded today

BI/bursa
18/1/2011
Irvin Avriano A.

JAKARTA: Government bond price (surat utang negara/SUN) price rebounded today and supress its yield, after debt management office (DMO/Ditjen Pengelolaan Utang) held an auction that absorb IDR6.05 trillion from bid given by bond-market player.

Data issued by Indonesia Bond Pricing Agency (IBPA/PT Penilai Harga Efek Indonesia) today shows the yield for 5 year bond corrected 10 basis points (bps) to 7.5% from previously 7.6%, while yield 10 year bond corrected 15 bps to 8.5%.

The 20 year bond yield corrected 9 bps to 10.06% and 30 years bond yield goes down by only 6 bps to 10.46%.

The yield curve also shows the yield for 5--20 years decline higher than other tenures.

PT BNI Securities Head of Debt Research Sukartono said the auction that been held not affected the bond market in significant ways. "It is only because market fluctuation," said him this afternoon.

At the auction, the government absorb bid for 30 years tenured FR0054, the biggest among other series, worth IDR4 trillion. The average yield that been won by the government given at 10.09% level, far below fair yield quoted by IBPA today at 10.46% level, or have spread 37 bps.

The next bond, tenured 20 years FR0053 series, wonned IDR1.85 trio given yield 8.54%, which have 152 bps spread with IBPA fair yield at 10.06% level.

The bid for FR0055 series, that will mature in 2016, only wonned IDR200 bio. The yield for the series give by DMO that lead by Rahmat Waluyanto at 7.51% level, a little higher than IBPA fair yield at 7.50% level, give a thin spread amounted to 1 bps.

"The 5 years tenures bond are quite the same with the actual yield in the secondary market, so there are no big differences in it."

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