DAILY OUTLOOK
Indonesia’s 10-year SUN yield fell 1.8bps to 7.095%, while the US 10-year Treasury rose 1.0bp to 4.961%, leaving the calculated SUN-UST spread at 213.4bps. JISDOR weakened 70 points to IDR 17,883/USD, while WTI fell 1.0% to USD 89.60/bbl and the ICBI eased 0.07%, pointing to mixed support for local bonds. We expect the 10-year SUN at 7.07%-7.17% today, with Bank Indonesia’s rate decision the key domestic catalyst and consensus at 5.75%. With no Cheap series on our valuation screen, prefer selective short-to-medium duration and avoid chasing long-end rallies until the policy signal and rupiah reaction are clearer, while maintaining a defensive bias on rupiah-sensitive tenors.
NEWS HIGHLIGHTS
- Global – Fitch Lifts Growth View
- Global – Iran Talks Revive Hopes
- Global – US-Japan Coordinate on China
- Credit – IIF Readies Bond Repayment
- Credit – LPS Rated idAAA
- PTRO – Ratings Affirmed idA+
Regards, Aldiracita Research
