Global Market Updates
• Wall Street equities closed with modest gain on Wednesday (Dec 27, 2023), DJI rose, +0.30%, S&P 500 surged +0.14%, and Nasdaq closed up by +0.17%.
• Stocks closed moderately higher with the S&P 500 reached nearly a 2-year high, while the Dow Jones Industrials and Nasdaq 100 hit record highs.
• US Treasury 10-yr yields slid by -10 bps to reach 3.79%, followed by shorter-termed UST 2-yr yields that slid by -6 bps hitting 4.20%.
• Treasury yields fall as investors assessed the upcoming year's monetary policy and financial market outlook.
• Wednesday's US economic was weaker than expected as the December Richmond Fed manufacturing sentiment index unexpectedly dropped to an 8-month low of -11, contrary to the expected increase to -3.
• European markets closed higher on Wednesday, initiating the last trading week of 2023. Expectations for the final three days include lower trading volumes due to fewer economic data points and the conclusion of major central bank meetings.
• Global bond yield on Wednesday moved lower; the German bund 10-yr yield fell -8.4 bps to 1.89%, the UK gilt 10-yr yield slid -6.9 bps to 3.43%. The Japanese GB 10-yr yield closed up +2.70 bps to 0.58%.
Domestic Market Updates
• Indonesian benchmark series of LCY government bonds closed lower on Wednesday (Dec 27, 2023), with the 10-yr benchmark yield dropping -0.29 bps to 6.47%.
• IDR strengthened against the USD (USD/IDR fell by -0.53% to 15,430) on Wednesday. The IDR appreciated is due to foreign investors observed flooding back into the domestic financial market.
• BI has launched a Public Consultation Report, a compilation of all public input on the concept of Digital Rupiah Development outlined in the Digital Rupiah Consultative Paper (CP) Phase I. The report release showcases BI's transparency and accountability in Digital Rupiah development.
• The SVBI auction yesterday experienced minimal market interest. The total awarded amount was USD13mn of the total indicative target of USD50mn.
• On Wednesday’s Indo GB series trading, SPN12240104 and SPN12240201 maintained the top spot in the bond market, boasting significant trade volumes of IDR1.45tn and IDR1.12tn, respectively. Moreover, FR77 and FR81 showed notable 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 6.45-6.60% for today.
• Attractive Indo GB series to be traded today : FR0040, FR0081, FR0096, FR0100.
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