Global Market Update
• The benchmark 10-year UST note yield rose by 2 bps to 2.78% on Tuesday (08/09/22).
• Meanwhile the benchmark 2-year UST note yield was up by 6 bps to 3.27% at the same time.
• Yield curve remained inverted with the spread between 2/10-year UST note stood at -49 bps.
• Albeit there will be no FOMC meeting in Aug-22, market participants expect that Fed to raise another 75 bps in Sep-22.
• Market participants awaits US CPI data release and consensus estimate expect inflation to spike 8.7% YoY in Jul-22.
• US stock market also closed lower. Dow Jones was down 0.18%; S&P 500 fell 0.42% while Nasdaq Composite declined 1.19%.
Domestic Market Update
• The benchmark 10-year Indo GB yield (FR0091) fell by 3 bps to 7.09% on Tuesday (08/09/22).
• The IDR strengthened against USD and was closed at IDR14,853/USD on Tuesday (vs IDR14,876USD on Monday).
• On the data front, Bank Indonesia (BI) reported domestic retail sales grew by 4.1% YoY in Jun-22, higher than previous month figure of 2.9% YoY. Indonesia’s retail sales is expected to increase by 8.7% in Jul-22 according to BI.
• Government successfully conducted SBSN auction yesterday with the total incoming bids reaching IDR30.85tn significantly higher than previous auction of IDR10.77tn.
• The total awarded bids were IDR10.64tn or higher than indicative target set at IDR7tn.
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 7.00-7.20% for today.
• Attractive Indo GB series to be traded today : FR0063, FR0070, FR0077, FR0037, FR0090, FR0052, FR0085, FR0073, FR0054 and FR0091.
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