Global Market Update
• US treasury notes yield moved upward along the curve on Tuesday (04/11/23).
• The benchmark 10-year UST note yield rose slightly by 1 bps to 3.43% yesterday.
• Meanwhile, the benchmark 2-year UST note yield increased 2 bps and hit 4.03% at the same time.
• US equity indices closed with mix result last night. The DJI climbed higher by 0.29%.
• However, the Nasdaq Composite fell 0.43% while the S&P 500 was relatively flattish
• International Monetary Fund (IMF) revised down its global economic output forecast by 10 bps from Jan-23 projection. It expects global output to grow 2.8% this year.
• IMF also warns that global economic activity is experiencing a broad based and sharper than expected slowdown.
• Based on IMF projection, advanced economies will experience a sharper economic slowdown than emerging market peers.
Domestic Market Update
• The domestic LCY government bonds were traded up on Tuesday (04/11/23).
• Yield on the benchmark 10-year (FR0096) fell by 2 bps to 6.64% yesterday.
• The IDR continued to strengthen against USD and closed at IDR 14,886/USD.
• Indonesia’s 5 year CDS is consistently below 100 bps and stood at 92.08 bps yesterday.
• SUN auction results : total incoming bids hit IDR45tn and total awarded bid of the 7 series offered were IDR16.1tn.
• Despite having higher incoming bids than in previous auction (IDR29.3tn incoming bids), yet the amount of issuance was slightly below the indicative target set at IDR17tn.
Market Projection
• Given the recent development on global and domestic market, we expect the 10 year Indo GB yield to move within a range of 6.60-6.80% for today.
• Attractive Indo GB series to be traded today : FR0063, FR0070, FR0077, FR0081, FR0084, FR0072, FR0079, FR0083.
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