Global Market Update
• The 10 year U.S. treasury yield rose by 2 bps to 1.34% on Friday (09/17/21) ahead of the Fed’s September meeting that will be held this week.
• The Fed’s policy meeting is expected to give the further details on when it may start to slow its asset purchases worth of USD120bn .
• Preliminary Michigan consumer sentiment and expectation data looked better than the previous month.
• September-21 preliminary consumer expectation rose by 2 points to 67.1. Meanwhile preliminary Michigan consumer sentiment increased by 0.7 point to 71.
• Those figures were still at the lowest point in a year despite improving. Overall the government benchmark yield across DM countries saw an upward pressure.
• However the upward pressure on the benchmark government bond is considered low.
Domestic Market Update
• The 10 year Indo GB yield was nearly flat at 6.14% on Friday (09/17/21).
• The movement of 10 year Indo GB yield remained within our forecast range of 6.10%-6.20% so far.
• The benchmark price of Indo GB series (FR0086, FR0087, FR0088 and FR0083) price were slightly corrected.
• This was attributable to the limited movement of global government bond yields and low external pressure.
• The IDR value consistently stayed below IDR 14,300/USD while 5 year Indo CDS was stable below 70 bps.
Market Projection
• We still expect the 10 year Indo GB yield to move within range of 6.10%- 6.20% on Friday (09/17/21) despite rising the U.S. treasury yield.
• Attractive Indo GB series to be traded today : FR0086, FR0064, FR0071, FR0078 FR0082, FR0087, FR0065, FR0068, FR0080, FR0062 & FR0067.
Disclaimer
