Company Update

03 April 2024

Fixed Income Report April 3, 2024

Global Market Updates
• Wall Street equities moved lower on April 2, with the DJI fell by -1.00%, the S&P 500 dropped by -0.72%, and the Nasdaq closed down by -0.95%.
• Stocks initially faltered on Tuesday as the 10-year Treasury note yield surged, propelled by robust manufacturing data. However, they regained ground later when Fed officials Daly and Mester suggest potential rate cuts this year. Despite positive reports on US factory orders and job openings, stocks maintained losses, while bond yields remained high.
• US Treasury 10-yr yields rose by +3.0 bps to 4.36%, while 2-yr yields declined by -2.0 bps to 4.70%. The 10-year yield rose to a four-month high, driven by Monday's robust US Mar ISM manufacturing index, which lessened expectations for Fed rate cuts.
• In February, JOLTS job openings in the US unexpectedly increased by 8,000 to 8.756mn, indicating a stronger labor market compared to expectations of a decline to 8.730mn.
• US factory orders for February outpaced forecast, rose by +1.4% MoM, compared to the anticipated increase of +1.0%.
In Europe, The Eurozone's March S&P manufacturing PMI was adjusted upward to 46.1 from the previously reported 45.7, reflecting a positive revision of +0.4.
• Global bond yields moved higher on Tuesday; The German bond yield surged by 10.2 bps to 2.40%, the UK 10-yr gilt yield jumped by +15.2 bps to 4.09% and the Japanese 10-yr JGB yield rose by 1.0 bps to 0.75%.

Domestic Market Updates
• Indonesian benchmark series of LCY government bonds closed mixed on April 2, with the 10-yr benchmark yield inched up by +0.01 bps to 6.67%, while the 2-yr yield fell by -0.55 bps to 6.33%.
• The IDR depreciated against the USD on Tuesday’s close (USD/IDR rose by +0.04% to 15,897). The dollar's uptrend has sparked higher demand for USD, while persistent selling in the SBN market has further pressured the rupiah.
• In March, Indonesia's manufacturing sector achieved its strongest performance in 27 months, driven by a substantial rise in domestic demand, while the Purchasing Manager's Index (PMI) for Indonesian manufacturing reached 54.2, up 1.5 points from February's 52.7, as reported by S&P Global.
• In Tuesday's Indo-GB series trading, FR96 and FR101 garnered considerable interest in outright transactions, with substantial trade volumes of IDR2.98tn and IDR2.93tn, respectively. Additionally, PBS32, FR102, and PBS38 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 6.55-6.70% for today.
• Attractive Indo GB series to be traded today : FR0081, FR0059, FR0099, FR0101, FR0087, FR0096, FR0098.

Disclaimer On

FR81 FR59 FR99 FR101 FR87 FR96 FR98

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