JAKARTA: Indonesia economic data in the first half of 2012 which reached 6.4% has spurred government bond prices in every tenor to increase.
Indonesia Bond Pricing Agency (IBPA) Corporate Secretary Tumpal Sihombing reported the domestic bond market has returned in bullish movement in yesterday’s trading as reflected by the depressed IBPA-Indonesia Government Securities Yield Curve in every tenor.
“Market players’ optimism reappeared after went missing due to disappointment on The Fed and ECB decision,” he said in an official statement, Tuesday (8/7/2012).
He explained the decreased yield curve was led by short and mid-term tenor which declined 3.0 basis points (bps) and 3.6 bps. Meanwhile, the long-term tenor only declined by 1.4 bps.
He said the decreased yield curve caused the benchmark series government bonds to increased after decreased in the last weekend.
“All series seem increased within a range of 5 – 41 bps, the largest increase occurred on DR0061 series by +41.1 bps from 109.6575 to 110.0680,” he explained.
Tumpal continued the increasing bond price also lifted the government bonds index and total return index.
“Government bond index increased by 0.1591 points or 0.12% in closing session from 132.6985 to 132.8576 while the total return index strengthened 0.3310 points or 0.18% from 185.2225 to 185.5535,” he uttered.
Although being dominated by price advance, the trade volume decreased by 29.9% from IDR4.3 trillion to IDR3.0 trillion while the total trade frequency declined 6.7% from 345 transactions to 322 transactions.
“The trade volume decline trend has occurred since the beginning of this month,” he said.
Besides domestic sentimens, Tumpal sees the increasing government bond also spurred by significant development on Greece bailout in which one of its indicators was Greece can save budget as much as US$3.7 billion in 2012. (T07/TW)