Bond Market Likely to Weaken

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  • Refleksi karyawan memantau pergerakan pasar uang dan obligasi di Global Market Permata Bank, Jakarta, Selasa (10/1). ANTARA/Rosa Panggabean

    Refleksi karyawan memantau pergerakan pasar uang dan obligasi di Global Market Permata Bank, Jakarta, Selasa (10/1). ANTARA/Rosa Panggabean

    TEMPO.CO, Jakarta – The Indonesian bond market is projected to move sideways this week with the potential to weaken. Trust Securities chief researcher Head Reza Priyambada said the weakening will result from the lack of positive sentiments.

    "Unless there are a global economic data that investors can positively respond to; that way the bond rate will strengthen albeit just a little bit," Reza told Tempo, Sunday, August 10.

    If positive sentiments suffice, the bond market may rise by an average rate of 45 to 60 basic points. If conditions are negative, bond prices may weaken by an average of at least 100-125 basic points due to profit taking.

    From last week's bond auction, the government reaped Rp11.60 trillion proceeds from five bond series, with the bid total amounting to Rp17.94 trillion.

    The government will auction three series of sukuk or Islamic securities (SBSN) on August 12, setting an indicative target of Rp1.5 trillion. Three SBSN series that will be auctioned are the SPN-S13022015 (new issuance), the PBS005 (reissuance), and the PBS006 (reissuance). The sukuks will mature on February 13, 2015.

    DEWI SUCI RAHAYU