DAILY OUTLOOK
The 10Y SUN yield was flat at 7.166% (+0.1 bps) on Friday, while the 10Y UST eased 1.0 bps to 5.260% after a weak September payroll print of 29,000. The SUN-UST spread stands at 190.6 bps. The rupiah firmed, with JISDOR fixed at IDR 17,898/USD from IDR 17,937/USD, and the front end outperformed as the 1Y SUN fell 5.2 bps to 6.726%. Oil near USD 90/barrel and US fiscal concerns keep a floor under global yields. We expect the 10Y SUN to trade within 7.12%-7.22% today. No series in our valuation screens Cheap; all benchmarks are Fair.
NEWS HIGHLIGHTS
- Global – Treasury Yields Drop After Payrolls Miss
- APBN – Suahasil Vows Deficit Below 3% Cap
- Bond – Corporate Issuance Rebounds To IDR 19.47tn
- Bond – Corporate Yields Track SBN Higher
- Bond – Sukuk Auction Targets IDR 10tn
- Credit – Protelindo IDR 741.1bn Bond Rated AAA(idn)
- ENRG – Offers IDR 500bn Bonds At 9-10%
- MDKA – Offers IDR 4.12tn Bonds At 8.25-10%
- OTMA – Ratings Withdrawn After Summit Oto Merger
- TLKM – Fitch Affirms BBB, Lifts Standalone Profile
Regards, Aldiracita Research
