Yields fell at Indonesian central bank’s first weekly bill auctions after it announced last week it would sell fewer 1-month paper.
One-month bill’s cutoff yield was at 6.35 per cent, five basis points below the previous auction’s level while three-month paper was three basis points lower at 6.57 per cent.
The six-month paper was at 6.62 per cent, down eight basis points. The auctions were the first since the central bank announced changes to the auctions last Friday – a 3-month transition to monthly auctions and a reduction in the size of 1-month SBIs.
Those measures had raised concerns the central bank was trying to check rising but volatile capital inflows into short-term debt seeking to capitalise on economic growth prospects and a rising rupiah.
Policymakers said the plans would have no impact on foreign ownership of SBIs.
The higher cutoff prices also calmed worries.
