Global Market Update
• US treasury notes yield keep falling as market digest weaker than expected labor market and manufacturing activities.
• The benchmark 10-year UST note yield slipped 3 bps to 3.31% on Wednesday (04/05/23).
• Meanwhile, the benchmark 2-year UST note yield fell deeper by 5 bps to 3.78% at the same time.
• US equity indices closed mix. Only the DJI that came higher after appreciating 0.24% last night.
• The S&P 500 and Nasdaq Composite, both fell 0.25% and 1.07% respectively.
• Markets are now split whether Fed would pause rate hike or continue to deliver 25 bps increase in May-23 FOMC meeting.
• Fear of recession has also caused oil prices to be lower. Brent was traded below USD85/bbl while WTI was traded below USD81/bbl.
Domestic Market Update
• The domestic LCY government bonds were traded mixed on Wednesday (04/05/23).
• Yield on the benchmark 10-year (FR0096) slightly fell by 3 bps to 6.68% yesterday.
• The IDR finally weakened against USD yet still hovering below IDR 15,000/USD and closed at IDR14,932/USD.
• Similar to the IDR, Indonesia’s 5-year CDS also came higher but remain below 100 bps and stood at 93.73 bps.
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, FR0083.
Disclaimer On
