January 2 - March 13, 2018, Government Bond Index Down 0.79%

Concerns over a rate hike by the US Federal Reserve (The Fed), which caused the Indonesian Rupiah to depreciate, impacted the domestic bond and stock markets. During February 2018, foreign investors recorded a net sell-off of almost Rp 32 trillion in both the stock and bond markets. Then, during the period of March 1-9, a further net sell-off of Rp 23 trillion was recorded.

Katadata's processed bond and stock indices show that the government bond index from January 2, 2018 to March 13, 2018, experienced a 0.79% decrease. This is evident in the composite bond index graph below, which stands at 99.21. Meanwhile, the corporate bond index still recorded a 0.33% increase. The composite bond index, however, decreased by 0.64% compared to its position at the beginning of January. The Jakarta Composite Index (IHSG), on the other hand, still recorded a 1.16% increase.

Compared to their highest points, the government bond index has fallen by 2.46%, the corporate bond index by 0.67%, and the composite bond index (corporate and government) has corrected by 2.2%. Similarly, the Jakarta Composite Index (IHSG) has fallen by more than 4%.