Global Market Updates
• Yields on US government bond were mixed with the short-term benchmark of 2-year slightly rising by 1 bps to 4.48%, whereas the long-term benchmark for 10-year fell 3 bps to 3.66% on Tuesday (Jun 6, 2023).
• The US equity markets recorded an increase led by NDX that appreciated by 0.36% followed by S&P 500 after appreciating 0.24%.
• Going forward, markets remain focus on upcoming US FOMC meeting. Most of market participants expect US central bank will hold the policy rate unchanged at 5.00-5.25% for Jun-23.
• World Bank sees that global economy is expected to grow by 2.1% in FY23E upwardly revised from 1.7% in the previous estimates largely driven by a more resilient global economies.
• Most of major economies such as US, Eurozone, and China are also upwardly revised for its economic outlook.
Domestic Market Updates
• The benchmark series of LCY government bond prices were mostly traded up yesterday with the 10- year yield fell 3 bps to 6.34% yesterday.
• The IDR has appreciated against the greenback and closed at IDR14,860/USD from IDR14,891/USD on previous day or appreciating 0.20%.
• Risk perception keeps on improving as the 5-year CDS is now approaching to 85 bps level.
• The total incoming bids on yesterday’s SBSN auction hit IDR60.04tn and of the 6 series offered government has awarded IDR7tn.
• Incoming bids on yesterday’s auction were higher than in previous auction of May 23, 2023 that reached IDR54.75tn.
Market Forecast
• Given the recent development on global and domestic market, we expect the 10 year Indo GB yield to move within a range of 6.30-6.45% for today..
• Attractive Indo GB series to be traded today : FR0081, FR0090, FR0087, FR0088, FR0062.
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