DAILY OUTLOOK
The SUN 10Y yield eased 1.9bps to 7.190% yesterday, while the UST 10Y edged up 1.3bps to 5.221%, narrowing the SUN-UST spread to 196.9bps. The JISDOR fix weakened to IDR 17,930/USD from IDR 17,899. Demand at the SUN auction was firm, with the government awarding IDR 35tn against an IDR 30tn target, mostly in short bills and FR0110. Fed officials still signal one more hike this year, and oil remains elevated amid Gulf attacks. We expect the SUN 10Y to trade in a 7.15%-7.23% range today. No series screens Cheap on our valuation, so we stay selective on duration.
NEWS HIGHLIGHTS
- Global – BOK Keeps Policy Restrictive
- Global – ESG Sukuk Holds Firm In EMs
- Global – Fed Officials See One More Hike
- Global – Fitch: Yield Surge Worsens Debt Outlook
- Global – Iran Crude Exports Fall To Zero
- Global – Oil Firm As Houthis Hit Aramco
- Global – Waller Links Yield Rise To Growth
- Bond – Jakarta Plans IDR 4.24tn Regional Bond
- Bond – SUN Auction Absorbs IDR 35tn
- ATIC – Taps Rights Issue For Convertible Bond
Regards, Aldiracita Research
