Company Update

07 Mei 2024

Fixed Income Report May 7, 2024

Global Market Updates    
• Wall Street equities extended gains on May 6, as the DJI up by +0.46%, the S&P 500 surged by +1.03%, and the Nasdaq closed up by +1.19%. 
• US Stock indexes closed moderately higher on Monday, with the S&P 500 recorded its largest three-day rally gain of the year, and the DJI reaching a 3-1/2 week high. Friday's Fed-friendly US payroll report continued to support stocks, raising expectations for interest rate cuts. Additionally, chip makers and AI hardware stocks showed strength, contributing to the market's positive momentum.
• Q1 earnings have largely exceeded expectations, providing a boost to stocks. Projections now indicate a +6.5% YoY increase, surpassing the pre-earnings estimate of +3.8%. Approximately 81% of reporting S&P 500 companies have outperformed Q1 earnings forecasts, as per Bloomberg Intelligence data.
• The 10-yr UST yields edged down by -1.0 bps to 4.49%, while 2-yr yields rose by +1.0 bps to 4.82%. Supply pressures restrained gains in T-notes as the Treasury scheduled auctions of USD125bn in T-notes and T-bonds for the quarterly May refunding this week.
• In Europe, Industrial producer prices in the Euro Area fell by 7.8% YoY in March 2024, revised from an 8.5% drop in the previous month, slightly below market expectations of a 7.7% decline.
• Global bond yields were mixed on Monday, The German bund yield fell by -2.6 bps to 2.46%, while the 10-yr UK gilts did not trade, with markets in the UK closed for the May Day holiday. 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 6, with the 10-yr benchmark yield  tumbled by -26.69 bps to 6.88%, marking a spread of +237 bps from the UST 10-yr yield at 4,51%.
• The IDR strengthened further against the USD, with USD/IDR falling by -0.37% to 16,025. The Rupiah was supported by the reported 5.11% YoY GDP growth in 1Q24, while market speculation heightened regarding potential policy easing by the Fed this year.
• The SBSN auction yesterday received a positive response, with a total incoming bid of IDR15.99tn, slightly lower than the previous IDR16.26tn. Meanwhile, the PBS038 secured the highest awarded amount of IDR3.20tn, with bid-to-cover ratio 1,12 out of the total awarded sum of IDR7.02tn.
• In Monday's Indo-GB series trading, FR0100 and FR081 attracted significant interest in outright transactions, with the highest trade volumes of IDR2.87tn and IDR1.68tn, respectively. Furthermore, FR081, FR0100, 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 6.85-7.10% for today.
• Attractive Indo GB series to be traded today : FR0081, FR0059, FR0095, FR0096, FR0092, FR0089. 
Disclaimer On

FR81 FR59 FR95 FR96 FR92 FR89

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