Global Market Update
• Yields on UST note inched up 1-4 bps higher ending last week trading session.
• On a weekly basis yields on US government bond rose 14-24 bps along the curve.
• Benchmark 10-year UST note yield increased 3 bps to 2.95% on Friday (06/03/22).
• UST note yields rose after firmer employment data release. US economy added 390,000 jobs in May-22.
• The actual employment data was above consensus estimate of 328,000 job creation.
• US unemployment rate was steady at 3.6% or just above the lowest level in the last 5 decades.
• The spike in US government bond yield has caused equity market to tumble. DJI was down 1.05%; S&P 500 dropped 1.63% and Nasdaq Composite fell 2.47%.
Domestic Market Update
• The benchmark 10-year Indo GB yield (FR0091) was down by 7 bps to 6.92% on Friday (06/03/22).
• The IDR continue to strengthen against USD to IDR 14,433/USD from 14,480/USD.
• Indonesia risk premium 5-year CDS increased and was closed at 93.15 bps from 92.40 bps previously.
• Bank Indonesia (BI) reported that non-residents in the domestic financial market had a net purchase of IDR10.37tn, consisting of a net purchase of IDR5.94tn in the SBN market and a net purchase of IDR4.43tn in the stock market for the period 30 May - 2 June 2022.
• Inflows started to coming back to Indonesia after sharp market decline that occur in early May-22.
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 6.90-7.10% for today.
• Attractive Indo GB series to be traded today : FR0070, FR0077, FR0084, FR0090, FR0078, FR0085, FR0054, FR0091.
Disclaimer On
