Govt mops up US$534.5 mln in bond sale

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The government absorbed US$534.5 million, or Rp7.76 trillion, from the sale of seven series of government bonds through Bank Indonesia’s auction system here on Tuesday.

The seven series of government bonds were SPN03220810, SPN12230203, FR0090, FR0091, FR0093, FR0092, and FR0089.

Based on the official statement of the Directorate General of Financing and Risk Management of the Ministry of Finance, the total incoming bid for the entire bond auction was Rp19.74 trillion.

The highest number of incoming bids were for the FR0091 series worth Rp7.84 trillion, with a weighted average yield of 7.32915 percent, so the absorbed funds amounted to Rp2.1 trillion.

Meanwhile, the highest amount of funds absorbed was from the SPN12230203 auction worth Rp2.45 trillion, with a bid of Rp2.59 trillion and a weighted average yield of 2.91347 percent.

Furthermore, from the SPN03220810 series, the funds absorbed amounted to Rp1.9 trillion with a bid of Rp3.56 trillion and a weighted average yield of 2.44577 percent.

From the FR0090 series, the government absorbed Rp10 billion from a bid of Rp2.91 trillion, with a weighted average yield of 6.625 percent.

The FR0093 series auction received an offer of Rp381 billion, with the government absorbing Rp150 billion and the weighted average yield pegged at 7.17857 percent.

The nominal amount from the FR0092 series was recorded at Rp1.15 trillion, which came from Rp2.11 trillion with a weighted average yield of 7.45896 percent.

However, the Directorate General of Financing and Risk Management noted that the government did not absorb funds from the FR0089 series auction despite an incoming bid of Rp318 billion.

Since the auction results have not reached the indicative target of Rp20 trillion, the government will conduct additional government bond auctions, or exercise a greenshoe option for four series, namely FR0090, FR0091, FR0093, and FR0092, with the same weighted average yields as the main auction.

Source: Antara News