Bond analyst from NC Securities I Made Adi Saputra said that the decision has also made the lower limit of interest rate on the corridor 150 bps from previously at 200 bps, so the central bank can loosen the liquidity.
I Made Adi said that the corporate bond is expected to be relatively busy due to the coupon rate offered which is higher than the government bonds.
"In terms of `yield`, a five-year corporate bonds with a rating of tenured `AA` (double A) are generally traded in the range of 8.25 to 8.75 per cent, the condition is more attractive than government bonds which valued to six per cent," he said .
However, government bonds also have a positive outlook, but it is recommended for active "trading" in the secondary market.
He added that the bond is also one of the long-term funding sources for companies to expand their businesses.
I Made Adi also projected that the banking sector and the multi-corporation will dominate bond issuance as property, small and medium enterprises (SMEs) and automotive financing demand is constantly increasing.
"Property market is still growing in the country, automotive demand and the SME sector also experienced a positive movement. Indonesia`s economic growth can still be encouraged to increase the financing needs of the real estate sector," he said.
I Made Adi said he also expected that the national economic condition which is not too affected by the European debt crisis could encourage State Owned Enterprises in issuing debt securities.
The state bond issuance is expected to be in great demand of domestic and foreign investors due to risk considerations, he said.
Indonesia Bonds Pricing Agency analyst Tumpal Sihombing also said that there are some positive sentiment which characterizes the domestic bond market due to BI Rate cut decision.
"The lowering of BI rate is expected to be one of the reasons for Indonesia`s growth amid the global economic performance," he said.
He said the lower and upper limit of Indonesia`s monetary operation interest rates was set respectively at 3.75 per cent for facility rate deposit and 6.75 per cent for lending facility rate.
"Trade activities also recorded a significant rise during the week affected by the government securities `settlement` auction in the last week," he said.
While the global market, US economic data showed a decline in jobless claims. In addition, the Greek leaders finally agreed on the proposed requirements of international lenders to get a bailout worth 130 billion Euros.
(Uu.A050/INE/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2012
