Short tenor state sukuk is most sought after in the latest auction

November 13, 2018, 08.59 PM  | Reporter: Danielisa Putriadita
Short tenor state sukuk is most sought after in the latest auction


SUKUK - JAKARTA. State SBSN auction, Tuesday (13/11), was a success. The number of bids for this sukuk auction reached Rp. 11.03 trillion. This amount is almost the same as the offer that came at the SBSN auction two weeks ago, which was Rp. 11.30 trillion.

However, in this auction the government only absorbed Rp. 4.12 trillion in the offer. In comparison, in the state sukuk auction two weeks ago the government absorbed Rp. 5.63 trillion.

Desmon Silitonga, Research Analyst at Capital Asset Management, said that the sukuk auction is usually followed by domestic investors. Seeing the number of incoming bids is quite stable, Desmon assessed the results of this auction were successful. The average bid is usually IDR 10 trillion to IDR 13 trillion. Desmon also assessed that the government absorbed Rp. 4 trillion is fair.

Desmon predicts that as long as there is no new external pressure, besides the increase in the Fed Fund Rate in December, SBSN auctions will still be asked by participants.

"I think that the increase in US interest rates in December has been anticipated, so that in general there is no excessive pressure, the next auction will still be in demand," Desmon said on Tuesday (11/13).

In this auction, short tenor is still a prima donna rather than a long tenor series.

The SPNS01052019 series that will mature on May 1, 2019 receives the most offers, valued at Rp.4.42 trillion. This series promises a weighted average yield of 6.59% per year. The government absorbed Rp. 1.05 trillion from this series.

Meanwhile, the most absorbed series by the government is SPNS01082019 which will mature on August 1, 2019. The government absorbs Rp. 1.6 trillion from the series which pegs weighted yields of 6.86%.

PBS015, which was due on July 15, 2047, became the least desirable series. The government only absorbs Rp. 470 billion of the series which will give a weighted average yield of 9.5%.

Editor: Hasbi Maulana

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