ST015 Savings Bond Sees Strong Demand for 2-Year Tenor

Investor Preference for Shorter Duration

The recent ST015 savings bond issuance has demonstrated strong investor appetite, particularly for the 2-year tenor (ST015T2). This instrument accounted for more than 70% of total orders across various distribution channels. According to William, PR and Corporate Communication Lead of the issuer, the ST015T2 was particularly attractive due to its competitive yield compared to LPS-guaranteed deposit rates.

Market Conditions Driving Demand

The popularity of ST015T2 can be attributed to the current market environment characterized by declining interest rates. Investors are seeking higher coupon payments in a landscape where rates are expected to remain volatile. The 'floating with floor' structure of these bonds provides investors with protection against potential rate fluctuations while allowing them to benefit from any future rate increases.

Diverse Investor Participation

The ST015 series has attracted significant interest from various investor segments, including the syariah-compliant investor group. The instrument is also seen as an attractive reinvestment opportunity for investors whose ST011 holdings have matured. This broad appeal has contributed to the overall success of the ST015 issuance, demonstrating robust demand in the current market conditions.