TEMPO.CO, Jakarta - Mid-term bond yields increases amid the current economic slowdown. Overall, the bond market is still under pressure, as indicated by prices that tend to move towards a negative territory; away from its par price.
As a result, investors are selling their mid-term bonds, hoping to book profits from the bonds' significant yield increases.
"The sell-off of long-term bonds has begun to decrease, but investors are now switching to sell their medium-term bonds that are experiencing a significant yield jump," NH Korindo Securities chief researcher Reza s Priyambada aid in a written statement on Wednesday, September 9.
Reza said that the yield for short-term government bonds (1-4 years) went up 8.97 basis points. The yield for medium term bonds (5-7 years) rose 51.33 basis points while for long-term bonds (8-30 years) it increased by 8.48 basis points.
"Market participants can pay attention to this week's economic data, especially in Indonesia, which include forex reserves and retail sales," said Reza.
DEWI SUCI RAHAYU