Global Market Updates
• Wall Street equities rallied Tuesday (Dec 5, 2023), DJI plummeted -0.22%, S&P 500 fell -0.06%, and Nasdaq rose +0.24%.
• Stocks on Tuesday concluded with a mixed settlement, Stocks saw limited gains following a drop in SSE to a 5-week low. This decline was triggered by Moody's Investors Service revising its outlook on China’s sovereign debt to negative, signaling a bearish outlook for global growth prospects.
• US Treasury 10-yr yields tumbled -1.0 bps to 4.18%, followed by shorter-termed UST 2-yr yield that fell 7.0 bps to 4.57%.
• 10-yr yields closed higher on Tuesday, bond yields dropped significantly following the October JOLTS job openings report, which fell more than anticipated to a 2-1/2 year low. This decline signals a cooling labor market, serving as a dovish factor for Fed policy.
• US Oct JOLTS job openings fell -617,000 to a 2-1/2 year low of 8.7mn. This indicates a labor market weaker than the expected 9.3mn, US Nov ISM services index rose +0.9 to 52.7, stronger than expectations of 52.3.
• Global bond yields Tuesday moved lower; the German bund 10-yr yield fell -8.5 bps to 2.36%, the UK gilt 10-yr yield slipped -3.6 bps to 4.14%. The Japanese GB 10-yr yield closed down -2.50 bps to 0.70%.
Wall Street equities rallied Tuesday (Dec 5, 2023), DJI plummeted -0.22%, S&P 500 fell -0.06%, and Nasdaq rose +0.24%.
Domestic Market Updates
• Indonesian benchmark series of LCY government bonds closed lower Tuesday (Dec 5, 2023), as the 10-yr benchmark yield edged up +0.52 bps to 6.58%.
• IDR weakened against the USD (USD/IDR rose +0.32% to 15,505) Tuesday. IDR depreciated aligns with a growing risk-averse mood leading up to the release of US data. This sentiment was further fueled by Moody's recent adjustment, shifting China's outlook to negative.
• Investors responded positively to the government's issuance of SBSN securities yesterday, successfully garnering a total incoming bid nominal of IDR19.7tn vs IDR18.5tn previously, with PBS003 securing the highest awarded bids of IDR4.2tn out of the total awarded amount sum of IDR9.1tn.
• In Tuesday’s Indo GB series trading, PBS003 and FR100 have become significant players in the bond market, displaying substantial trading volumes of IDR3.28tn and IDR2.78tn, respectively. Moreover, the most actively traded bonds were FR89 and FR91.
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 6.50-6.70% for today.
• Attractive Indo GB series to be traded today : FR0040, FR0081, FR0096, FR0100.
Dislaimer On
