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CURRENCY
Rupiah Rebounds as Government Bond Issues Begin

The start of this year's government's bond auction program at the end of the week helped the rupiah regain its value back to Rp12,647 per US dollar, a level it reached a few days earlier. The indicative amount of government bonds auctioned was set at Rp12 trillion, slightly higher than the usual amount. Those auctioned carried three-month, one-year, 10-year and 20-year tenors. This year's overall issuance target will depend on the government's 2015 revised budget to be discussed in parliament next month. Most expect government bond issuance this year to be less than previously proposed, given the savings from the cut in fuel subsidy late last year.

January 13, 2015