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Bank Rakyat Indonesia (Persero) Tbk PT (ticker: BBRI.JK, exchange: Privately Held)
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Indonesia 10-year Bonds Rise to Near 3-Month High; Rupiah GainsApril 17 (Bloomberg) -- Indonesian 10-year government bonds
rose to near a three-month high as yields attracted investors.
The rupiah gained.
Indonesia is benefiting from so-called carry trades, which
involve purchases of high-yield securities with borrowed yen. A
sale of 7 trillion rupiah ($770 million) of 10- and 17-year bonds
today attracted bids totaling 19.9 trillion rupiah. The country's
benchmark rate of 9 percent, the third-highest in Asia, is 18
times the Bank of Japan's 0.5 percent target rate.
``There are not many `high-carry' countries in Asia right
now,'' said Sim Moh Siong, a strategist at Citigroup in Singapore.
Indonesian yields may fall as the country's ``macroeconomic story
remains positive and the politics stay conducive,'' he said.
The yield on the 10 percent bond due July 2017 fell 2 basis
points, or 0.02 percent, to 9.81 percent as of the 4:00 p.m.
fixing in Jakarta, according to the Inter Dealer Market
Association. The price rose 0.110, or 1,100 rupiah per 1 million
rupiah face amount, to 101.193. Bond yields move inversely to
The two Asian countries with benchmark interest rates higher
than Indonesia's are Sri Lanka and Pakistan.
The government sold 3 trillion rupiah of debt due in July
2017 at an average yield of 9.82 percent, and 4 trillion rupiah
of securities maturing July 2024 at 10.38 percent to help fund
its budget deficit, Rahmat Waluyanto, director general of the
debt management unit at the finance ministry, said in Jakarta.
The rupiah rose 0.1 percent to 9,088 against the dollar,
according to data compiled by Bloomberg.
Citigroup's Sim said there was speculation Bank Indonesia
has been buying dollars to slow the rupiah's ascent. ``They have
been reluctant to allow the rupiah to strengthen because of
export competitiveness,'' he said.