Global Market Update
• US treasury notes yield recorded an increase yesterday in advance to FOMC meeting that will be held on early May-23.
• The benchmark 10-year UST note yield increased 5 bps on a daily basis to 3.45% on Wednesday (04/26/23).
• US equity indices recorded a mix performance yesterday. The DJI and S&P 500 both fell 0.68% and 0.38% respectively.
• The Nasdaq Composite rebounded after corrected significantly on the previous day and jumping 0.47%.
• US equity markets dropped as fears on banking turmoil returns with First Republic Bank reported a substantial decline on its deposit.
• Now markets are waiting on Fed’s FOMC meeting on May 3, 2023. According to CME FedWatch there is 72.7% probability that US central bank to raise another 25 bps.
• Furthermore, markets also assess the continued development of US debt ceiling.
Domestic Market Update
• Domestic financial market has resumed its trading yesterday after coming back from Eid Fitr holiday season.
• We have seen a significant increase in investors appetite towards government bond as local currency bond market yields dropped.
• The benchmark 10-year (FR0096) yield experienced 14 bps decline to 6.51% on Wednesday.
• The IDR also appreciated against USD and closed at 14,836/USD despite the 5- year CDS is increasing and approaching to 100 bps again.
• In response to higher government bond prices, the domestic benchmark stock market index (JCI) also recorded a substantial appreciation.
• The JCI jumped 1.29% and closed to hit 6,910.15 yesterday as less risky asset valuation experienced a significant re-rating.
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 6.50-6.70% for today.
• Attractive Indo GB series to be traded today : FR0070, FR0077, FR0081, FR0084, FR0086, and FR0088.
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