Global Market Update
• US financial market was closed yesterday commemorating Martin Luther King Jr day.
• On the data front, Japan’s PPI increased 0.5% MoM/10.2% YoY in Dec-22, higher than consensus estimate of 0.3% MoM/9.5% YoY.
• China’s new home prices in 70 major cities declined 1.5% YoY in Dec-22. This was the 8 straight month of price contraction since May-22.
• Recent market trend showed that weakening USD has propelled US stock market to rebound particularly tech stocks.
• In addition, Chinese government to ease pandemic curb measures as well as policy to revive its property sectors have triggered a rebalancing showed by >USD4bn inflows to China’s stock market.
Domestic Market Update
• Yield on the benchmark 10-year Indo GB increased yesterday after recorded a continuous decline.
• The benchmark FR0096 yield rose 6 bps to 6.73% starting this week (01/16/23).
• Domestic currency continued to appreciate against USD while risk perception still improving.
• The IDR strengthened against USD and was closed at IDR15,045/USD on yesterday (vs IDR 15,149/USD last week).
• On the other hand, the 5-year Indo CDS slightly declined to below 90 bps and stood at 88.39 bps.
• Statistics Indonesia reported Indonesia’s trade balance surplus of USD3.89bn in Dec-22, marking 32-straight months of surplus.
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 6.60-6.80% for today.
• Attractive Indo GB series to be traded today : FR0063, FR0070, FR0077, FR0044, FR0085 and FR0096.
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