Global Market Update
• Most of the short-term UST notes, have recorded an increased in yield in Wednesday (03/29/23).
• Yet, the long-term government bond yields remained flattish at the same time by which the 10-year benchmark stayed at 3.56%.
• Given the increase in government bond yields, US equity market closed with gains.
The 3 benchmark indices successfully managed its performance to hit more than 1% daily return yesterday.
• The DJI added 1.00% and S&P 500 jumped 1.42%. Nasdaq Composite led the gain with 1.79% daily return yesterday.
• Indeed, concerns about US banking crisis due to SVB and Silvergate Bank collapse have eased.
• Michael Barr, who serves as Fed ‘s vice chairman for supervision said that SVB troubles were due to poor risk management.
Domestic Market Update
• Most of domestic LCY government bonds were traded lower yesterday (03/29/23).
• Yield on the benchmark 10-year (FR0096) slightly increased 3 bps to 6.79% yesterday.
• The IDR strengthened against USD and closed at 15,065/USD on Tuesday (vs IDR15,087/USD on Wednesday).
• Indonesia’s 5-year CDS finally dropped below 110 bps and currently stood at 104.96 bps.
• On the other hand, JCI also recorded a substantial gain with 1.17% yesterday hitting 6,839.44.
• Significant JCI daily return was also in-line with massive portfolio inflows to equity totaling IDR1.64tn in the regular market yesterday.
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 6.75-6.95% for today.
• Attractive Indo GB series to be traded today : FR0063, FR0070, FR0077, FR0081, FR0085, FR0072, FR0076.
Disclaimer On
