TEMPO.CO, Jakarta - Liquidity in the state bond (SUN) market is expected to tighten following the large numbers of issuances and high value of bonds maturing this year.

Stephanus Turangan, president director of PT Trimegah Sekuritas Tbk, said that less than two months into 2016, the value of maturing SUN has already reached Rp 138.65 trillion. Meanwhile, maturing commercial bonds' value has amounted to Rp 48.34 trillion.

Stephanus said that the bond market will stay volatile this year due to external and domestic sentiments. However, he predicted that the yield rate will be more promising than in 2015.

Trimegah is currently underwriting the issuances of two bonds worth Rp500 billion to Rp1 trillion. "[The bonds] of a multifinance issuer and a property issuer will be released in the first semester of this year," Stephanus said.

The Indonesia Stock Exchange (IDX) last week saw the listings of three bond series by BRI worth Rp 4.65 trillion.

So far into the year, the IDX has recorded four bonds and sukuks issuances by three issuers worth Rp 5.5 trillion, making a total of 278 issuances with an outstanding value of Rp 252.85 trillion and US$100 million by 102 listed companies.

As for state securities (SBN), the IDX lists 92 series with a value of Rp 1,445.27 trillion and US$1.04 billion; and six asset-backed securities (EBA) worth Rp 2.32 trillion.

NH Korindo Securities Indonesia chief researcher Reza Priyambada said that with the rupiah projected to gain against the US dollar, bond prices are likely to follow suit. However the market is still on the lookout for negative sentiments stemming from overseas and domestic economic data releases. "Keep an eye on each sentiment that can reverse the bond trading rate," Reza said.

DESTRIANITA K | DANANG FIRMANTO