Indonesia Credit Yields Widened Tracking the Rally of Govvies Yields
Indonesia corporate bonds yield continued widening on last week trading with the yields short tenor bonds rose faster than longer dated bonds. Short term bonds in AAA space climbed an average of 22 bps WoW while medium term papers only widened by 8 bps WoW. Based on the rating front, we saw AA and A bond yields rose the most up to 25 bps WoW. Govvies yield also shifted higher with 10 year benchmark bonds (FR0070) rose 56 bps WoW. On the secondary trading front, the trading activity was light last week as seen from higher trading volume rising by 13% WoW to IDR 3,642 billion. Top traded bonds were; FIFA 8.5% 2016 with yield tightened 11 bps to 8.44% on IDR 405 billion trades, Tiphone Mobile Indonesia, Tbk (TELE:IJ) 11% 2018 yielded lower to 10.93% on IDR 284 billion and Indomobil Finance (IMFI) 8.25% 2016 traded higher with 13.27% on IDR 274 billion trades.
