Company Update

28 April 2022

Fixed Income Report April 28, 2022

Global Market Update
• The 10-year UST yield rose 11 bps to 2.83% on Wednesday (04/27/22). Majority of US government bonds experienced a rise on its yield.
• US equity market was closed mixed. DJI and S&P rose by 0.19% and 0.21% respectively, while Nasdaq Composite was slightly weakened 0.01%.
• Investors concern remain on 3 things, namely : 1) inflation outlook and monetary policy; 2) war development and 3) Covid-19 outbreak.
• Inflation outlook remain the key driver in propelling yield to rise recently. With inflation rose to a multi decade highs, central bank is expected to aggressively tighten their monetary policy.
• Conflict between Russia-Ukraine now escalate to other countries particularly western allies.
• Meanwhile, Beijing is now struggling to control its Covid-19.

Domestic Market Update
• Yield on 10-year Indo GB fell 4 bps and was closed at 6.94% on Wednesday (04/27/22).
• The IDR slightly weakened against USD to IDR 14.413/USD yesterday (vs IDR14,111/USD in the previous day).
• Risk premium which is reflected by the 5-year Indo CDS was closed at 100.19 and rising from 98.86 bps.
• S&P revise Indonesia’s long term sovereign rating outlook from negative to stable on Apr 27, 2022.
• Positive outlook indicates that Indonesia’s economic prospect remain solid going forward. - The upward revision also reaffirms Indonesia’s economic resilience during Covid-19 crisis and become another positive catalyst for domestic financial assets.

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 6.95-7.05% for today.
• Attractive Indo GB series to be traded today : FR0070, FR0086, FR0090, FR0078, FR0052, FR0087, FR0091.

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