Demand for Indonesia`s Sun Hikes, while CDS Trend Decreases

03 June 2020

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Demand for Government Securities (SUN) at an auction on Tuesday, June 2, increased. Incoming Bids Reached Rp. 105.27 Trillion. Howver, The Government Only Absorbed IDR 24.35 Trillion, 23% of the Incoming Bids. Investors are Seeking Suns of 5 and 10 Years. In the 10-year tenor, The Total Incoming Bids Reached is Rp. 44 trillion, but the government only absorbed Rp. 8 trillion. (KONTAN) Credit Default Swap (CDS) 5 Year Indonesia was in a decreasing trend since May 2020 after being reailed 290bps at March 2020. As of 2 June 2020, CDS 5 Year Indonesia stood at 146bps. This in line with 10-year yields of Indonesian govt bonds that dropped to 7.14% in 2 June 2002 from 8.38% in march, the highest yield in 2020. This shows that the risk appetite of investors Started to improve Researchphoto by Rizknas on Unsplash