US treasury yields rose 3-8 bps along the curve on Wednesday (03/09/22).
The benchmark 10-year rate increased 7 bps to 1.94% while yield on 30-year treasury bond jumped to 2.32%.
US equity market rebounded last night. DJI rose 2%; S&P 500 gained 2.57% and Nasdaq Composite jumped 3.59%.
Oil prices finally eased after previously hitting USD130/barrel for brent. The jump in oil prices came after Biden said US bans imports oil and gas from Russia.
The number of job openings in the US was 11.26 million in Jan-22, down slightly from a revised record 11.45 million in Dec-21.
Still, job figures came above market expectations of 10.9 million, suggesting worker shortages persist.
China annual inflation rate increased 0.90% YoY, unchanged from the previous month and well in line with market expectation.
The Japanese economy advanced 4.6% on an annualized basis in 4Q21, compared with flash data of 5.4% and reversing from a revised -2.8% in 3Q21.
Domestic Market Update
The 5-year Indo GB yield rose 3 bps to 5.61% and its 10-year Indo GB yield declined 3 bps to 6.77% on Wednesday (03/09/22).
Yields on IDR denominated government bond has consistently increased since early Mar-22.
The IDR value strengthened against USD to the level of IDR14,342/USD yesterday (vs IDR14,396/USD previously).
Risk premium which is reflected by the 5-year Indo CDS dropped from124.35 bps to 115.72 bps.
Indonesia's consumer confidence index (CCI) dropped 6.5 points to 113.1 in Feb-22 from 119.6 in the previous month, which was the highest reading in 2 years.
CCI level in Feb-22 marked the lowest print in five months, attributed to another wave of COVID-19 cases, with all of the six main sub-indices softening.
Albeit the decline consumer sentiment is still positive and CCI was consistently above 100 points since Oct-21 indicating that Indonesia's economy remains strong.
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 6.75-6.85% for today.
Attractive Indo GB series to be traded today : FR0090, FR0064, FR0078, FR0087 and FR0091.
