DAILY OUTLOOK
Indonesia’s 10-year SUN yield eased 1.2bps to 7.097% on 10 September, even as the US 10-year Treasury jumped 12.2bps to 4.963%, narrowing the SUN–UST spread to 213.4bps. JISDOR strengthened 16 points to IDR17,536/USD, while WTI rose 1.3% to USD103.81/bbl after Brent briefly exceeded USD108 amid a protracted US-Iran conflict. Treasury’s USD5.19bn buyback, below its USD6bn cap, failed to calm global duration markets and pushed the two-year yield 16bps higher. For today, we expect the 10-year SUN to trade in a 7.05%-7.20% range with a cautious-neutral bias. Short-to-medium SBNs remain preferable, combining attractive carry with lower sensitivity to oil-led global yield volatility.
NEWS HIGHLIGHTS
- Global – Oil Hits USD 107
- Global – US-Iran War Drags On
- Global – Treasury Selloff Accelerates
- Global – Australia Yield Hits 2011 High
- SBN – Foreign Holdings Rise
- SBN – ASEAN Demand Weakens
- BMRI – Completes USD750m Global Bond
- PTPP – Rating Cut to idB
- AGII – Fitch Affirms A(idn)
- WSKT – Rating Raised to idB
Regards, Aldiracita Research
