KONTAN.CO.ID - JAKARTA. Bank Indonesia's governor said on Wednesday bond investors should not bet on the government selling debt at higher yields in auctions, arguing the total amount to be raised in the remainder of 2020 would be manageable at lower yields.

Based on the central bank's calculation, the government may sell around 425 trillion rupiah (US$ 27.71 billion) of bonds to the market in the rest of 2020 to cover its widening fiscal deficit, indicating that the target in each auction will not jump very much, Governor Perry Warjiyo said in a streamed news conference.

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"Market will see, at the beginning they bid for yields that are too high, thinking the sum that will be raised will be so large," Warjiyo said, adding that he believes there would be more bids per auction in the future and yields will fall. ($1 = 15,340 rupiah)

Editor: Herlina Kartika Dewi