Global Market Update
• The benchmark 10-year UST note yield rose by 5 bps to 3.11% on Wednesday (08/24/22).
• Meanwhile the benchmark 2-year UST note yield increased by 9 bps to 3.39% at the same time.
• The spread between 2/10-year UST note yield widened to -28 bps from previously -24 bps.
• US stock indices increased with DJI rose 0.18%; S&P 500 was up 0.29% while Nasdaq Composite gained 0.41%.
• Elsewhere, UK 10-year government bond yield continued to increase and hitting 2.70% after inflation reached 10% YoY.
• Germany 10-year government bond yield also nudged up and reaching 1.37% yesterday.
• Both, UK & Germany benchmark government bond yields have risen by 41 bps and 29 bps respectively in the last week.
Domestic Market Update
• The benchmark 10-year Indo GB yield (FR0091) declined by 7 bps to 7.03% on Wednesday (08/24/22).
• The IDR weakened against USD and was closed at IDR14,848/USD on Wednesday (vs IDR14,838/USD on Tuesday).
• Indonesia money supply (M2) grew by 9.6% YoY in Jul-22, a slightly lower pace than a month before at 10.6% YoY.
• Indonesia’s loan grew 10.71% YoY in Jul-22, a slightly higher than previous month figure at 10.66% YoY.
• Given the M2 and loan grew positively, domestic liquidity remains ample amidst tightening global condition.
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, FR0044, FR0042, FR0052, FR0085 and FR0091.
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