The Indonesian government has cashed in on a bullish market during its monthly bond offering this week, managing to raise 5.625 trillion rupiah (some 618 million U.S. dollars) in proceeds, a report said Wednesday.

During Tuesday's offering, the government sold 4.325 trillion rupiah worth of bonds maturing March 2013 at a weighted average yield of 12.21 percent, and another 1.3 trillion rupiah worth of June-2021-maturing bonds at a 12.41 percent yield.

Market appetite for the bonds proved to be high, with the FR0033 and FR0034 series bonds being oversubscribed by 1.91 and 2. 1 times respectively, said The Jakarta Post newspaper.

Bidders had requested yields ranging from 12.09 percent to 14. 75 percent for the 12.5-percent-coupon FR0033 bonds, which will be payable twice a year every March and September, and from 12.31 percent to 14.87 percent for the 12.8-percent FR0034 series, payable every June and December.

It was precisely this bullish market, however, that gave the government the upperhand during the auction, with only lower-yield bids being accepted.

Source: Xinhua