DAILY OUTLOOK
SUN 10Y yield closed at 7.420% (-0.3bps) on 21 Oct as Bank Indonesia held the BI Rate at 5.75% but raised the deposit facility rate 25bps to 5.00%, while UST 10Y eased 1.7bps to 5.102%, leaving the SUN-UST spread at 231.8bps (+1.4bps). JISDOR was fixed at IDR 17,986/USD from IDR 18,006. Brent above USD 110 on Saudi attacks and French yields at 5% keep risk appetite fragile, while SBR015 closes today. We expect SUN 10Y to trade within 7.35%-7.50%. FR0090 is the only Cheap series and is too short for duration.
NEWS HIGHLIGHTS
- Global – French 10Y Yield Tops 5% Mark
- Global – India MPC Flags More Rate Hikes
- Global – Oil Climbs On Saudi Attack Risks
- Global – UK Inflation Jumps To 3.5%
- Domestic – Fitch Sees Growth Below 8% Target
- BI – Holds 5.75%, Raises Deposit Facility
- Bond – SBR015 Closes Today, IDR 3.3tn Left
- Bond – Tamaris Hydro Offers IDR 715bn Sukuk
- Credit – Fitch Sees Limited MSCI Sovereign Impact
- APIA – Readies IDR 1.12tn Bond, Sukuk Repayment
Regards, Aldiracita Research
