US Presidential Election Impact on the Domestic Bond Market Minimal

The United States presidential election had little impact on the Indonesian bond market. This can be seen from the Composite Bond Price Index (ICBI) on the bond market trading on November 9, 2016, which only fell 0.5549 points (0.26 percent) to 212.3703 from the previous day's closing. The decline was lower than that of the stock market index. The bond index showed an upward trend throughout 2016.

The government bond index (total return) on November 9, 2016, experienced a correction of 0.6148 points (0.29 percent) to 209.7794 from the previous day's position. Similarly, the corporate bond index (total return) only fell 0.0457 points (0.02 percent) to 222.1462 from the previous day's closing.

Indonesia's still-strong economic fundamentals, the stable Rupiah exchange rate, and the still-attractive yield compared to other government bonds prevented market panic. Data from Asiabondonline shows that the yield on Indonesian government bonds with a 10-year tenor was 7.361 percent, significantly higher than Singapore's 1.942 percent, Thailand's 2.163 percent, and Japan's negative yield.