Global Market Update
• The benchmark 10-year note yield increased 4 bps to 3.49% on Monday (09/19/22).
• On the other hand, the 2-year benchmark also increased 7 bps to 3.94% at the same time.
• Yield on the benchmark 2-year government bond finally hitting above 3.9%.
• Spread between 2/10-year UST note yield was at -45 bps or widening from the previous day position at -42 bps.
• US stock indices increased on Monday. The DJI rose 0.64%; S&P 500 increased 0.69%.
• Whilst Nasdaq Composite lead the appreciation with the gain of 0.76% at the same time.
• Market still expect that on Sep-22 FOMC meeting, another 75 bps hikes would be taken with 80% probability, bringing FFR to 300-325 bps.
Domestic Market Update
• The benchmark 10-year Indo GB yield (FR009) was flat at 7.19% on Monday (09/19/22).
• Indonesia’s 5-year CDS finally rose to 112.45 bps yesterday after moving within range of 100-110 bps last week.
• However, the IDR continued to depreciate against USD. The IDR was closed at IDR14,978/USD on Monday (vs IDR14,955/USD on Friday last week).
• Government successfully issued IDR26.97tn worth of retail Sukuk (SR017) and the numbers of participating investors hitting 65,362, the highest of all time.
• Government plans to conduct SBSN auction for 7 series with the indicative target set at IDR9tn on Tuesday (09/20/22).
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 7.10-7.30% for today.
• Attractive Indo GB series to be traded today : FR0063, FR0070, FR0077, FR0081, FR0086, FR0090, FR0064, FR0082, FR0087, FR0091, FR0096
Disclaimer On
