Global Market Update
• US treasury notes yield recorded an increase yesterday despite worst than expected economic data release
• The benchmark 10-year UST note yield increased 6 bps on a daily basis to 3.52% on Wednesday (04/26/23).
• Meanwhile the 2-year benchmark yield rose 12 bps and finally hitting 4.07% at the same time.
• However all the benchmark equity indices rebounded sharply. The DJI rose 1.57%, the S&P 500 increased 1.96% while Nasdaq Composite jumped 2.91%.
• Now markets are waiting on Fed’s FOMC meeting on May 3, 2023. According to CME FedWatch there is 89% probability that US central bank to raise another 25 bps.
• This was higher than previous day that market only expect 73% probability of 25 bps hike.
Domestic Market Update
• After rebounded sharply, the LCY government bond prices closed mixed yesterday.
• The benchmark 10-year (FR0096) yield experienced 1 bps increase to 6.52% on Thursday.
• The IDR also appreciated against USD and closed at 14,707/USD vs 14,836/USD on the previous day.
• Indonesia’s 5-year CDS slightly dropped and closed at 97.33 bps at the same time.
• In response to higher government bond prices, the domestic benchmark stock market index (JCI) also recorded an appreciation.
• The JCI rose 0.51% and closed to hit 6,945.48 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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