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Bond Wrap

INDONESIA
  • IndoGB's Slowing Supply Underpins Fiscal Discipline (Source: Bloomberg)
  • The average time-to-maturity of the IndoGBs has declined from 12 years in 2011 to 8.6 years in August (Source: Bloomberg)
  • Bank Indonesia is now the largest investor with a share at 25.5%, and banks at 19.2%, with the former's share rising sharply on the back of the burden-sharing agreement with the government (Source: Ministry of Finance)
  • Equity markets bucked regional trends performing well throughout the day.
  • Bonds rallied across the curve with most maturities seeing lower yields.


2yr 6.521% (-2bp) 5yr 6.571% (-0.5bp) 10yr 6.659% (-1bp) 30yr 6.845% (-0.5bp)

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