Global Market Updates
• Wall Street equities ended higher on April 23, with the DJI rose by +0.69%, the S&P 500 grew by +1.20%, and the Nasdaq closed up by +1.59%.
• US stock gained across the board on Tuesday, with the DJI hitting a 1-1/2 week high. The market was buoyed by better-than-expected Q1 earnings results. Stocks extended their gains as a weaker-than-expected US April S&P manufacturing PMI report pushed bond yields lower.
• US Treasury 10-yr yields edged down by -1.0 bps to 4.61%, while 2-yr yields slipped by -11.0 bps to 4.86%. T-notes prices rebounded as US April S&P manufacturing PMI contracted, facing supply pressure with USD69bn of 2-year T-notes auctioned as part of this week’s USD183bn of T-note auctions.
• The US April S&P manufacturing PMI fell to a 4-month low of 49.9, below expectations of an increase to 52.0. Meanwhile, the S&P Global US Composite PMI also declined to 50.9 in April 2024 from 52.1 in the previous month, indicating a modest expansion in the country's private sector.
• US new home sales jumped 8.8% in March to 693K, the highest in 6 months, beating forecasts of 668K. This rebounded from a 5.1% drop in February, showing resilient demand despite higher mortgage rates.
• In Europe, the Eurozone April S&P manufacturing PMI unexpectedly fell to 45.6, below expectations of 46.5. Conversely, the April composite PMI rose to 51.4, beating expectations of 50.7 and marking the strongest expansion in 11 months.
• Global bond yields were mixed on Tuesday; The German bond yield rose by +1.6 bps to 2.50%, the UK 10-yr gilt yield surged by +3.60 bps to 4.24% and the Japanese 10-yr JGB yield moved flat, fell by -0.10 bps to 0.89%.
Domestic Market Updates
• Indonesian benchmark series of LCY government bonds closed higher on April 23, with the 10-yr benchmark yield grew by +1.89 bps to 7.05%, while the 2-yr yield edged up by +0.30 bps to 6.86%.
• The IDR strengthened against the USD at Tuesday’s close (USD/IDR fell by -0.09% to 16,220). The Rupiah maintained it’s appreciation, while the DXY corrected by 0.11% to 105.80. The public's positive reception of the MK's ruling on the election dispute has had a beneficial effect on the business environment and investment climate.
• The SBSN auction received a weaker response yesterday, with a total incoming bid of IDR16.26tn, lower than the previous IDR21.06tn. Meanwhile, the SPNS20012025 secured the highest awarded amount of IDR1.69tn out of the total awarded sum of IDR5.07tn.
• In Tuesday's Indo-GB series trading, FR0100 and FR0097 garnered considerable interest in outright transactions, with the highest trade volumes of IDR2.70tn and IDR0.95tn, respectively. Furthermore, FR0100, FR0092, and FR0097 experienced high trading frequency.
Market Forecast
• Given the recent developments that unfolded within the global and domestic markets, we expect the 10-yr Indo GB yield to move within the range of 6.85-7.05% for today.
• Attractive Indo GB series to be traded today : FR0081, FR0059, FR0095, FR0101, FR0087, FR0096.
