Global Market Updates
• Wall Street equities continued a modest gain on Monday’s close (Jan 8, 2024), DJI surged by +0.58%, S&P 500 increased by +1.41%, and Nasdaq ended up by +2.20%.
• Stocks closed moderately higher on Monday’s driven by Nvidia's impressive 5% surge, which sparked a tech rally and lifted the overall market.
• US Treasury 10-yr yields fell by -4 bps, setting at 4.01%, while the shorter-termed UST 2-yr yields decreased by -4 bps at 4.36%.
The 10-year yields declined after comments by Fed Logan over the weekend, hinting a potential slowdown in the Fed's reduction of its asset portfolio to ensure ample liquidity in financial markets.
• US Nov consumer credit rose by USD23.7bn, surpassing the anticipated USD8.5bn and marking the highest surge in a year.
The Eurozone Jan Sentix investor confidence index increased by +1.0 to -15.8, in line with expectations.
• German Nov factory orders rose +0.3% MoM, weaker than expectations of +1.1% MoM.
• Global bond yields on Monday moved lower; the German bund 10-yr yield tumbled by -2.0 bps to 2.13%, the UK gilt 10-yr yield fell by -1.5 bps to 3.77%. The Japanese GB 10-yr yield remain unchanged at 0.61%.
Domestic Market Updates
• Indonesian benchmark series of LCY government bonds closed lower on Monday (Jan 8, 2024), with the 10-yr benchmark yield fell -0.05 bps to 6.68%.
• The IDR weakened against the USD (USD/IDR rose by +0.10% to 15,525) at Monday’s close, marking a decline for five consecutive days since January 2, despite the BI’s announcement regarding the increased foreign exchange reserves in December 2023.
• BI announced Indonesia's foreign exchange reserves stood at USD146.4bn at the end of Dec-23, marking an increase from the USD138.1bn recorded at the end of Nov-23. The increase in reserves resulted from the inflow of tax and service revenues, coupled with the government's withdrawal of foreign loans.
• Today, the government will hold an auction for State Sharia Securities (SBSN) or State Sukuk, with the SPN-S and PBS series set for auction, aiming for an indicative target of IDR12tn.
• On Monday’s Indo GB series trading, FR101 and FR87 were notable in the bond market, experiencing high trade volumes of IDR2.60tn and IDR1.7tn, respectively. Moreover, FR77 and FR81 also sustained substantial 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 6.55-6.75% for today.
• Attractive Indo GB series to be traded today : FR0077, FR0081, FR0096, FR0100.
Disclaimer On
