DAILY OUTLOOK
Indonesia’s 10-year SUN yield fell 3.5bps to 7.122%, while the US 10-year Treasury rose 6.6bps to 4.996%, narrowing the calculated SUN-UST spread to 212.6bps. JISDOR strengthened 8 points to IDR 17,745/USD, while WTI slipped below USD 100/bbl, easing imported-inflation pressure. The ICBI gained 0.17%, indicating demand remained constructive across domestic bonds. However, the UST yield near 5.00% and a still-hawkish global rate backdrop should cap long-end gains. We expect the 10-year SUN at 7.08%-7.18% today with a neutral-to-cautious bias. Prefer short-to-medium duration, particularly FR0094, which remains Cheap at 7.246% YTM, and avoid aggressive long-end exposure until US rates and geopolitical risks stabilize.
NEWS HIGHLIGHTS
- Global – Hormuz Remains Vital, Qatar Says
- Global – Trade Talks Start Before Summit
- Global – US Secures Greenland Security Deal
- Global – Yen Vulnerable After BOJ Guidance
- Credit – Readies Funds for IDR 800bn Sukuk
- Credit – Falls to Restricted Default
- ADHI – Moves Restructuring Into Implementation
- BVIC – Funds IDR 30.28bn Coupon Payments
- MCOR – Secures idAAA Stable Rating
- PTPP – Seeks IDR 645bn Bond Restructuring
Regards, Aldiracita Research
