Indonesia Weighs Debut Kangaroo Bond Sale on Yield Outlook
08 Jul 2013 07:24 GMT
 
Indonesia is considering selling Kangaroo bonds for the first time next year as analysts predict Australia's yield premium over Treasuries will narrow (more)

Indonesia is considering selling Kangaroo bonds for the first time next year as analysts predict Australia's yield premium over Treasuries will narrow and its currency weaken.

"We are thinking of tapping this market, and issuing in the Australian dollar is a possibility," Robert Pakpahan, director general at the debt management office, said in a July 5 interview in Jakarta. "We will be meeting with investors first to gauge what kind of demand there is."

The extra yield investors demand to hold 10-year Australian government notes over similar-maturity Treasuries has fallen 30 basis points this year to 121 and is projected to reach 94 basis points by the end of 2014, according to Bloomberg surveys of analysts. Australia's dollar, which has dropped 13 percent against the greenback since March, will weaken an additional 1.7 percent by the middle of next year, according to the median estimate in a separate survey.


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