Government of Indonesia Raises $1 Billion in Tuesday’s Bond Auction
The Finance Ministry of Indonesia announced that the government sold IDR 12 trillion (roughly USD $1 billion) worth of conventional bonds on Tuesday (14/10), far above the indicative target of IDR 8 trillion (USD $667 million). High demand shows that investors have confidence in the debt markets of Southeast Asia’s largest economy. Previously, it had been reported that proceeds of the bonds will be used to finance the country’s budget deficit in 2014. Six series of bonds, with maturities ranging between 2015 and 2044, were offered.
Bonds Issuance Tuesday 14 October 2014:
| Bonds | Weightened Average Yield |
| 10-Month T-Bills | 6.76270% |
| 1-Year T-Bills | 7.02075% |
| 15-Year Bonds | 8.74337% |
| 5-Year Bonds | 8.14421% |
| 10-Year Bonds | 8.31704% |
| 30-Year Bonds | 9.12930% |
Tuesday’s auction had total winning bids of IDR 32.85 trillion, far above the IDR 19.87 trillion of the previous auction. The highest bid-to-cover ratio was 6.46 for the 10-year bond.