Global Market Update
• The short-term US Treasury Notes yields keep on increasing while the longer-term slightly declined.
• The benchmark 2-year yield was up by 2 bps and closed at 4.12% on Thursday (03/30/23).
• On the other hand, the 10-year benchmark recorded a decrease of 2 bps on its yield and closed at 3.55% at the same time.
• US stock indices posted a gain last night. Nasdaq Composite has led the gain after appreciating 0.73%.
• Meanwhile the DJI and S&P 500 increased 0.43% and 0.57% respectively at the same time.
• US reported a contraction of 2.7% QoQ on its corporate profit in 4Q22 after previously expanded marginally by 0.8% in 3Q22.
• Furthermore, US also reported higher than expected Core PCE price in 4Q22. It expanded 4.4% QoQ in 4Q22, despite lowering than previous quarter of 4.7% QoQ, yet it remains above market expectation of 4.3% QoQ increase.
Domestic Market Update
• The domestic LCY government bonds were traded mixed yesterday (03/30/23).
• Yield on the benchmark 10-year (FR0096) stayed at 6.80% yesterday.
• The IDR strengthened against USD and closed at 15,047/USD on Thursday (vs IDR15,056/USD on the previous day).
• Indonesia’s 5-year CDS has finally dropped to below 100 bps again and currently stood at 99.32 bps.
• On the other hand, JCI fell 0.45% yesterday after jumping 1.17% on the previous day.
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 6.75-6.95% for today.
• Attractive Indo GB series to be traded today : FR0063, FR0070, FR0077, FR0081, FR0085, FR0072, FR0076.
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