- The demand for SRBI seems to be on the rise early in the year, suggesting foreign investors’ willingness to hold Rupiah-denominated assets despite some short-term risks.
- The government maintained its tight control over net SBN issuance thus far in January 2024, leading to lower risk premiums and higher demand that help stabilise SBN yields.
- The anticipated decline in global interest rates might tempt the government to postpone its SBN issuance, but this back-loading strategy remains vulnerable to the negative rate shock risk.
