Bond Market Still Hit, Yields Rise

The weakening of the rupiah throughout the weekend still be prohibitive rate for the bond market could turn higher.
The selling pressure is still felt the bond market and even higher than that seen in the previous week's spike in yields or yields for various Tenors.

"The confidence of the market of participants still seem low to re-enter and buy some bonds, both government and corporate bonds, despite some prices had been below par it," said head of research at PT NH Korindo Securities Reza Priyambada, Sunday (30/8 ) night,

The absence of the US central bank's decision when the Fed raised the benchmark interest rate at the FOMC meeting Gave new uncertainties. Especially in China last week released the decline in interest rates roomates Affect the Devaluation of its currency.

"Conditions for the weekend was at more or less the same, the rise of negative sentiment makes of participants growing niche market to sell her," he said.

The weakening in the bond market looks Inevitable that the tenor of the movement that is Likely to increase is in almost all Tenors. Not only in government bonds, the corporate bond yield rate tends to increase of slightly.

From the macroeconomic side, the pace of bond market this time influenced by the conditions in the country, especially in the form of a weak exchange rate and the lack of positive sentiment in the country.

The increase is in the average yield Achieved by the Reviews largest short-term bonds (1-4 years) who experienced an increase of in the average yield of 16.90 basis points (bps), tenor medium (5-7 years) Increased yield of about 11.63 bps , Then of long-term (8-30 years) experienced an increase of in a yield of up to 16:19 bps.