Global Market Update
• US treasury notes yield increased along the curve ahead of US non-farm payrolls data release.
• The benchmark 10-year UST note yield rose 9 bps to 3.40% on the last trading day last week.
• Meanwhile, the benchmark 2-year UST note yield jumped 15 bps to 3.98% at the same time.
• US equity indices closed the week with mix result. Only the DJI that came with weekly positive return of 0.63%.
• The S&P 500 and Nasdaq Composite, both fell 0.10% and 1.10% respectively.
• US Labor Department reported that weekly jobless claims ending on April 1, 2023 hit 228,000 higher than 200,000 of Dow Jones Survey.
• The data suggest that US labor market tended to slowdown and thus triggering expectation that Fed would pivot early.
Domestic Market Update
• The domestic LCY government bonds were traded mixed last week.
• Yield on the benchmark 10-year (FR0096) fell by 3 bps to 6.65% on Thursday last week ahead of Easter Holiday.
• The IDR strengthened against USD and closed at IDR 14,913/USD. The IDR tend to strengthen as expectation of Fed cut spread.
• Indonesia’s 5 year CDS also stabilized below 100 bps and stood at 94.62 bps last week.
• Bank Indonesia reported that during 3-5 April 2023, foreign portfolio inflows to domestic financial market hit IDR4.2tn.
• Both SBN and equity market recorded an inflow of IDR2.1tn last week.
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 6.60-6.80% for today.
• Attractive Indo GB series to be traded today : FR0063, FR0081, FR0084, FR0072, FR0079, FR008.
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