DAILY OUTLOOK
The 10Y SUN was little changed at 7.027%, up 0.2bps, while the UST 10Y added 1.2bps to 4.762% and narrowed the SUN-UST spread to 226.5bps. JISDOR fixed weaker at IDR 17,746/USD and spot USD/IDR moved to 17,720, while WTI rose 0.9% to USD 86.56/barrel as US-Iran strikes resumed around the Strait of Hormuz and Treasuries extended their selloff. The government auctions nine SUN series today against an IDR 32tn indicative target, which should anchor the belly if demand holds. We expect the 10Y SUN to trade in a 6.95% to 7.10% range with a neutral bias, and FR0094 remains the only Cheap series on our screen, supporting selective 1-3 year exposure.
NEWS HIGHLIGHTS
- Global – Bessent Meets Russian Finance Minister
- Global – Curve Seen Steepening On Term Premium
- Global – Treasury 10Y Yield Hits 19-Month High
- Global – Trump Downplays Iran War Scale
- Global – UAE Intercepts Iranian Drone Attack
- Credit – Pos Indonesia Delays Sukuk Coupon Payment
Regards, Aldiracita Research
