Last SUN Auction Results 2023 Capai IDR 41.18 Trillion Amid Investor Wait And See

Illustration of Rupiah (Photo: dock. Antara)

The Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance held an auction of Government Securities (SUN) on Tuesday 12 December or the last SUN auction in 2023, the total bids included in this auction amounted to Rp41.18 trillion. This figure is lower when compared to the results of the previous two weeks' SUN auction which reached Rp48.71 trillion.

Meanwhile, the nominal auction won was IDR 19 trillion or in accordance with the indicative target. Of the seven SUN series, there are 2 series of State Treasury Letters (SPN) and 5 series of State Bonds (ON).

"The government has decided to win an offer of Rp. 19.0 trillion at today's SUN auction by considering a reasonable SBN yield in the secondary market, plans for financing needs in 2023, and the current state budget condition," said Director of State Debts of the Directorate General of Financing and Risk Management of the Ministry of Finance Deni Ridwan in his official statement, Wednesday, December 13.

Deni said that the SUN issuance auction on Tuesday was the last SUN auction for 2023 in accordance with the calendar for the issuance of Government Securities (SBN) in 2023.

According to Deni, investor interest in the last SUN auction in 2023 today is relatively good in the midst of the attitude of investors waiting for the decision on the Fed, BOE, and ECB interest rate which is scheduled for December 14, 2023, Indonesian time.

This is reflected in the high number of income bids of IDR 41.18 trillion or 2.17 times the indicative target that has been announced. In addition, the good performance of the APBN is a positive supporting factor in the SUN auction.

Deni added that investor interest in the medium to long SUN tenor series is still strong. This is reflected in the number of offers in the 6 and 11-year SUN series which are still dominant with an incoming bid of IDR 20.52 trillion or 49.82 percent of the total incoming bids and won IDR 11.6 trillion or 61.1 percent of the total awarded bids.

The interest of foreign investors in yesterday's SUN auction was still solid with the amount of incoming bids reaching Rp9.08 trillion. The majority of the incoming bids for foreign investors were in the 6-year SUN tenor series of Rp5.13 trillion or 56.52 percent of the total income bids for foreign investors and won Rp2.3 trillion or 12.11 percent of the total paid bids.

Deni menjelaskan perbaikannya kondisi pasar SBN domestik dalam beberapa minggu terakhir mendorong penurunan Weighted Average Yield (WAY) bond negara yang diwinkan pada lelang SUN hari ini sebesar 1 hingga 10 bps dari level WAY bond negara yang dimenangkan pada lelang SUN sebelumnya, sehingga Pemerintah memperoleh borowing cost yang lebih kosif.