Foreign Investor Net Sell IDR 2.06 Trillion
As well as, foreign net sell SBN worth IDR 2.06 Trillion this week, realizing the profit of post government securities (Surat Berharga Negara/ SBN) records the price increase since the trimming of the BI 7-DRRR reference rate this year.
Moreover, Foreign ownership in the SBN was drop to IDR 1,068.17 Trillion (as of 12 Nov), before finally returning to IDR 1,069.21 Trillion (as of 13 Nov), compare to the last weekend that had touch IDR 1,070.22 Trillion in high level. The SBN market pressure is still influence by the US and China trade tensions. Yesterday, all of the SUN benchmark had a thin yield increase, with a 10-year SUN benchmark FR0078 closed at the level of 7.04%.
Bank Jateng Issue NCD IDR 1.6 Trillion. Bank Pembangunan Daerah Jawa Tengah (Bank Jateng) issue negotiable certificates of deposit (NCD) worth at IDR 1.6 Trillion with discount rate of 6.20%-6.97% in three series, namely: Series A worth IDR 370 Billion for 3-month tenor and discount rate of 6.20%; Series B worth IDR 330 Billion 6-month tenor is discounted at 6.70%; and Series C worth IDR 900 Billion 12-month tenor is discount rate at 6.97%.
From the fundamentals, Bank Jateng book a credit distribution of IDR 47.52 Trillion at 3Q19, or up 4.28% YoY compare to the same period in the previous year. Meanwhile, on the third party fund side, Bank Jateng record growth of 16.8% YoY to be value at IDR 58.55 Trillion.
Foreign Investor can Buy SUN in the Primary Market. Since contain in regulation of the Minister of Finance (PMK) No. 168/PMK. 08/2019 concerning Government Securities (SBN) in the domestic primary market. Article 2 PMK mentions that the government determines that each party can buy SBN in the domestic starter market by auction.
The purchase of SBN can be made in rupiah or foreign currency (currency). The PMK is sign by the Minister of Finance Sri Mulyani, effective 8 November 2019. As for the purpose of this toll step, it will make the SUN auction better and the market more efficient. The entry of foreign investors in the SUN auction, will also make the market base wider. So that the specified auction target is increasingly realistic achieve, as SBN yield is still superior to other countries.
Looking Forward to Trade Balance Data. Overshadow the weekend SUN movement. Investors are observing the Indonesia October trade balance data, which is project to record a deficit of USD 300 Million, or a deeper deficit from the previous month of USD 161 Million. Furthermore, investors also keep a close look at foreign investors, who had record net sell IDR 2.06 Trillion this week. Last, in addition to SUN benchmark, investors can also take note of FR0081, FR0082, FR0080, FR0083, and FR0076, i.e. the series will be offer at the SUN auction on Tuesday next week.
-REVIEW (14 Nov 2019)-
-PRICE OF BENCHMARK SERIES-
FR0077 (5yr): +1.8 Bps to 106.30 (6.48%)
FR0078 (10yr): +0.4 Bps to 108.22 (7.04%)
FR0068 (15yr): +0.6 Bps to 108.27 (7.42%)
FR0079 (20yr): +0.4 Bps to 107.47 (7.62%)
-YIELD OF GLOBAL BONDS-
2yr UST: -0.045 point to 1.59%
5yr UST: -0.063 point to 1.62%
10yr UST: -0.067 point to 1.82%
30yr UST: -0.066 point to 2.30%
German Bund 10yr: -0.051 point to -0.35%
UK Gilt 10yr: -0.050 point to 0.70%
-CDS OF INDONESIA BONDS-
2yr CDS: +0.28% to 24.97
5yr CDS: +0.85% to 73.72
10yr CDS: +0.29% to 142.77
-CRUDE OIL PRICES-
WTI: -0.61% to USD56.77/Barrel
BRENT: +0.06% to USD62.41/Barrel