Company Update

06 Maret 2024

Fixed Income Report March 6, 2024

Global Market Updates
• Wall Street equities posted losses on March 5, with the DJI fell by -1.04, the S&P 500 dropped by -1.02%, and the Nasdaq closed down by -1.65%.
• Stock indexes fell on Tuesday, weakness in technology stocks, including Apple and Tesla, weighed on the market, driven by negative corporate news. Apple's stock declined over -2% after reports of a -24% drop in iPhone sales in China, while Tesla fell over -4% following a sharp decline in Chinese vehicle shipments. Stocks remain lower due to disappointing US economic data for January, including factory orders and the ISM services index,
• US Treasury 10-yr yields tumbled by -9.0 bps to 4.13%, followed by 2-yr yields slipped by -7.0 bps to 4.54% on Tuesday. UST yields retreated following indications of easing price inflation in the latest economic data.
• US factory orders for January fell by -3.6% MoM, the largest decline in 3-3/4 years and below expectations of -2.9%. Meanwhile, the US Feb ISM services index fell -0.8 to 52.6, weaker than expectations of 53.0.
• The Eurozone's February S&P composite PMI was revised higher by +0.3 to hit an 8-month peak of 49.2, up from the earlier reported 48.9.
• Global bond yields moved lower on Tuesday; The German bund 10-yr yield fell by -6.8 bps to 2.32%, and the UK gilt 10-yr yield slipped by -10.6 bps to 4.01%. The Japanese JGB 10-yr yield edged down by -1.2 bps to 0.71%.

Domestic Market Updates
• Indonesian benchmark series of LCY government bonds closed lower on Tuesday (March 5, 2024), with the 10-yr benchmark yield rose +0.82 bps to 6.64%, followed by 2-yr yield edged up +0.13 bps to 6.26%.
• The IDR depreciated against the USD at Tuesday’s close (USD/IDR rose by +0.18% to 15,769). The Rupiah weakened as bond yields rose during the week, while market caution prevailed during the DPR plenary session regarding allegations of fraud in the 2024 Presidential Election.
• The SBSN auction gained positive response yesterday, garnered a total incoming bid of IDR17.0tn, lower than the previous IDR19.8tn. PBS032 secured the highest awarded amount of IDR3.60tn out of the total awarded sum of IDR7.38tn.
• In Tuesday's Indo-GB series trading, PBS32 and FR96 were notable in the bond market, with substantial trade volumes of IDR2.63tn and IDR1.90tn, respectively. Meanwhile, FR102, FR81, and FR91 saw significant trading activity.

Market Forecast
• Given the recent developments that unfolded within the global and domestic markets, we expect the 10-yr Indo GB yield to move within the range of 6.55-6.70% for today.
• Attractive Indo GB series to be traded today : FR0081, FR0099, FR0071, FR00101, FR0096, FR0075, FR0097.

Disclaimer On

FR81 FR99 FR71 FR101 FR96 FR75 FR97

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