'€œOn Wednesday, there was a correction of treasury notes'€™ yields, which increased by 20 to 35 basis points. It seems there was an external situation which had influenced the treasury notes'€™ yields,'€ he said as quoted by Antara in Jakarta on Thursday.

Robert said despite global pressures which led to increases in yields, foreign investors were still attracted to invest in Indonesian government bonds.

'€œForeign investors have still carried out private placement in rupiah. On Wednesday, foreign ownership [of government bonds] had increased to 39.48 percent from 39.31 percent in the previous day. So, despite fluctuations from May to July, foreign ownership has continued to come,'€ said Robert.

The ministry'€™s treasury notes director Loto Srianita Ginting said that increases in treasury notes'€™ yields, which occurred despite pressures from the decline of China'€™s stock market, were influenced by several domestic factors.

Loto said that the treasury notes'€™ yields could decrease further and investors'€™ interests could increase if Indonesia'€™s inflation rate could be better controlled and the rupiah exchange rate movement against the US dollar could be more stable until the end of this year.

'€œIf inflation is controlled, there are potential decreases in yields. A more stable rupiah could also influence the yields. The more stable the rupiah exchange rate is, the lower the treasury notes'€™ yields will be,'€ said Loto. (ebf)(+++)

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