Bond Market Sluggish After Election
15 April 2014 14:10 WIB
TEMPO.CO, Jakarta - The Indonesian bond market is expected to be sluggish this week. Reza Priyambada, Secretary General of the Certified Securities Analysts Alumni, said investors will be focusing on an array political issues instead, as the presidential elections near. Some things the market is keeping its eyes on are parties' plan to form coalition and potential figures that will be on the run to be the next president and vice president.
Therefore, Reza suggests investors to remain wary of possible downturns if there are economic data releases that fall beneath expectations. "The existence of a number of auctions is expected to help a little," Reza told Tempo yesterday.
The Finance Ministry's Directorate General of Debt Management announced they will auction five series of Government Bonds (SUN) with an indicative target of Rp8 trillion today. The bonds are the short-tenor SPN12150206 and SPN12150403 series and the long-term benchmark SUN series: the 20-year FR0068, the 10-year FR0070, and the 15-year FR0071.
Reza estimated government bond prices will weaken and the yields to rise, since the market is still looking at the quick count results of the legislative elections.
ANANDA PUTRI | ALI HIDAYAT