Global Market Update
• The 10-year UST yield jumped 5 bps to 2.71% and again hitting its highest level in the last 3 years on Friday (04/08/22).
• US government bond yield was up 3-7 bps along the curve on daily basis while yields increased 9-30 bps along the curve from a week ago.
• Yield of 5 and 30 year UST were at the same level last week, bringing spread to 0 bps.
• Last week UST yield spike was triggered by FOMC minutes of meeting that showed Fed’s officials plans to tighten aggressively and starting shrinking its balance sheet.
• US stock index were mixed. DJI was up 0.40%; while S&P 500 dipped 0.27% and Nasdaq Composite fell 1.34%.
• US growth stocks such as in tech sector continuously showing its high sensitivity to higher interest rates.
• Russian central bank held an unscheduled meeting and cut the benchmark policy rate by 300 bps to 17% even though inflation rate hiked 16.7% YoY in Mar-22.
Domestic Market Update
• Yield on 10-year Indo GB slightly increased by 1 bps to 6.78% on Friday (04/07/22).
• The IDR was unchanged and stayed at IDR14,362/USD last week.
• Risk premium which is reflected by the 5-year Indo CDS also rose to 82.60 bps (vs 81.34 bps in the previous day).
• Indonesia's CCI fell 2.1 points to 111.0 in Mar-22 from 113.1 in the
previous month. The latest figure marked the lowest reading in six months.
• Albeit the economic recovery to continue, the decline in consumer sentiment was attributable to higher inflation outlook given the increase in food & fuel prices. All the 6 sub-indices reported the decline.
Market Projection
• Given the recent development on global and domestic market, we expect the 10 year Indo GB yield to keep steady within a range of 6.75-6.85% for today.
• Attractive Indo GB series to be traded today : FR0070, FR0086, FR0090, FR000071, FR0078, FR0087, FR0091.
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