- The improving demand conditions in the SBN market have allowed the government to start issuing more SBN over the past month, including an ultra-long IDR-denominated bond that may mark a shift in the government’s debt issuance strategy.
- The government may look to issue more longer-dated bonds in the coming periods, given the reduced competition at the longer end of the global bond market.
- Lower refinancing risks and the marginal difference in coupon rates between medium- and long-term bonds increase the appeal for the government to add more duration to the SBN market.
