Mid-term Bond Sales on the Rise

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  • Sejumlah pialang memantau pergerakan saham saat peringatan '38 Tahun Diaktifkannya Kembali Pasar Modal Indonesia' di Gedung Bursa Efek Jakarta, 10 Agustus 2015. Acara dihadiri oleh Presiden Joko Widodo (Jokowi) Ketua Otoritas Jasa Keuangan (OJK) Muliaman Hadad dan para pelaku pasar modal. TEMPO/Subekti.

    Sejumlah pialang memantau pergerakan saham saat peringatan '38 Tahun Diaktifkannya Kembali Pasar Modal Indonesia' di Gedung Bursa Efek Jakarta, 10 Agustus 2015. Acara dihadiri oleh Presiden Joko Widodo (Jokowi) Ketua Otoritas Jasa Keuangan (OJK) Muliaman Hadad dan para pelaku pasar modal. TEMPO/Subekti.

    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