Company Update

06 Mei 2024

Fixed Income Report May 6, 2024

Global Market Updates    
• Wall Street equities closed with gains on May 3, as the DJI surged by +1.18%, the S&P 500 rose by +1.26%, and the Nasdaq jumped by +1.99%. 
• US stocks strode higher on Friday, with the S&P 500 and Nasdaq 100 reaching 2-1/2 week highs and the DJI hitting a 3-1/2 week high. The market opened on a positive note, buoyed by strong earnings from Apple, which soared more than +6%, fueling optimism about the earnings potential of major technology firms.
• US Treasury 10-yr yields fell by -8.0 bps to 4.50%, while 2-yr yields decreased by -6.0 bps to 4.81%. Bond yields dropped following Friday’s lackluster US job report, fueling expectations of potential Fed rate cuts later this year.
• US April nonfarm payrolls rose by +175,000, below the expected +240,000, marking the smallest increase in six months. The unemployment rate unexpectedly rose by +0.1 to 3.9%, weaker than the anticipated of no change at 3.8%.
• The US April ISM services index unexpectedly dropped to 49.4, marking its sharpest contraction in 16 months. This missed expectations of 52.0 and signaled the first downturn in services sector activity since Dec-22. Conversely, the ISM services prices paid sub-index rose to 59.2, surpassing expectations of 55.0.
• In Europe, the unemployment rate in the Euro Area remained at a record low of 6.5% in Mar-24, unchanged from the preceding three months and consistent with market forecasts.
• Global bond yields were mixed on Friday, The German bund yield fell by -4.6 bps to 2.49%, while the UK 10-yr gilt yield dropped by -6.4 bps to 4.22%. The Japanese 10-yr JGB yield remained unchanged at 0.90%.
Domestic Market Updates
• The Indonesian benchmark series of LCY government bonds closed higher on May 3, with the 10-yr benchmark yield  declined by -1.74 bps to 7.14%, marking a spread of +264 bps from the UST 10-yr yield at 4,50%.
• The IDR strengthened against the USD at Friday’s close (USD/IDR fell by -0.62% to 16,084). This appreciation was observed alongside most regional currencies, as the DXY contracted by 0.04% to 105.23.
• Based on transaction data from April 29 to May 2, 2024, non-residents recorded a net purchase of IDR3.06tn. This comprised a net purchase of IDR3.75tn in SBN, a net sale of IDR2.27tn in the stock market, and a net purchase of IDR1.58tn in SRBI.
• In Friday's Indo-GB series trading, FR0100 and FR0101 attracted significant interest in outright transactions, with the highest trade volumes of IDR5.88tn and IDR3.13tn, respectively. Furthermore, FR0100, FR0081, and FR0086 saw high trading frequency.
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 7.05-7.25% for today.
• Attractive Indo GB series to be traded today : FR0081, FR0059, FR0095, FR0087, FR0096, FR0100. 
Disclaimer On

FR81 FR59 FR95 FR87 FR96 FR100

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