JAKARTA. Economists estimate the government securities auction that takes place today, January 18, 2022, will potentially have an increase in incoming bids, ranging from IDR 75 to 85 trillion. This prediction considers the investors’ intention to enhance their portfolios at the earlier time of the year.

Josua Pardede, Vice President of Economist of Bank Permata, confirms that the said projection is based on the trend of bond yield that tends to shift sideways since the beginning of last year. Furthermore, he also said that after The Fed gave out restraining signals earlier in the first week of this year, the bond yield is moving upwards, albeit back to decreasing.

“The said trend reflects how the sentiment of the monetary restraint cycle from The Fed tends to have a temporary effect,” Pardede told Bisnis earlier this week. Thus, he believes that the incoming bids will potentially be higher than the first auction in 2022.

Based on the Directorate-General Finance and Risk Management of the Ministry of Finance data, the government will offer seven series of government securities. They are equipped with various tenors, indicatively targeting IDR 25 billion, capped at IDR 37.5 trillion. (AM/ZH)