Bank Indonesia Raises $834.49 Million in Bond Auction as 5.50% Rate Hike Draws Inflows
Updated
Updated · Reuters · Jun 12
Bank Indonesia Raises $834.49 Million in Bond Auction as 5.50% Rate Hike Draws Inflows
1 articles · Updated · Reuters · Jun 12
Summary
15 trillion rupiah ($834.49 million) was raised in Bank Indonesia's June 10 SRBI auction, with the central bank saying foreign inflows increased after its surprise policy move.
A 25-basis-point off-cycle rate hike on Tuesday lifted the benchmark rate to 5.50%, part of BI's effort to stabilize the rupiah after a run of record lows.
Foreign money has also started returning to Indonesia's government bond market, especially in short- and medium-term tenors, according to BI spokesperson Ramdan Denny Prakoso.
The rupiah strengthened 0.25% to 17,930 per dollar in Friday's opening session as BI said it would keep domestic instruments attractive and continue measured intervention across offshore, onshore and spot markets.