DAILY OUTLOOK
Indonesia’s 10-year SUN yield rose 2.1bps to 7.179%, while the US 10-year Treasury yield increased 1.4bps to 5.002%, putting the calculated SUN-UST spread at 217.7bps. JISDOR weakened by 52 points to IDR 17,687/USD, as elevated oil prices and expectations for a Federal Reserve rate hike sustained imported-inflation and rupiah pressures. Domestic bond sentiment may therefore remain cautious ahead of the Fed decision, with foreign flows likely sensitive to further moves in US yields and the dollar. We expect the 10-year SUN yield to trade within 7.15%-7.25% today. Investors should favor short-to-medium duration, including FR0094, while avoiding aggressive long-end exposure until policy uncertainty eases.
NEWS HIGHLIGHTS
- Global – China US Explore Tariff Cuts
- Global – Extreme Shorts Brace for Fed
- Global – Houthi Pressure Deepens Saudi Crisis
- Global – Oil Freight Costs Hit Record
- Global – US 10Y Hits 2007 High
- IATA – Readies IDR 199.13bn Repayment
Regards, Aldiracita Research
