DAILY OUTLOOK
The 10Y SUN yield edged up 0.2bps to 7.214% yesterday, holding steady even as the 10Y UST fell 6.1bps to 5.125%, which widened the SUN-UST spread by 6.3bps to 208.9bps. JISDOR strengthened to IDR 17,898/USD from IDR 17,930. Hotter-than-expected US September CPI revives Fed hike risk, while renewed Hormuz shipping attacks keep oil elevated, limiting room for a SUN rally. We expect the 10Y SUN to trade within 7.18%-7.26% today. FR0094 screens Cheap at the front end while the rest of the curve sits at Fair, so we favour short tenors over duration.
NEWS HIGHLIGHTS
- Global – Container Ship Sinks In Hormuz Attack
- Global – Daly Signals More Fed Hikes Ahead
- Global – Indian Bond Yields Hit Three-Year High
- Global – US Inflation Accelerates On Gasoline Costs
- Bond – Corporate Bond Mandates Reach IDR 56tn
- Credit – Pefindo Flags Retail, Property Downgrade Risk
- ASDF – Readies IDR 788bn Bond Payment
- INKP – Plans IDR 585bn Bond, Sukuk Repayment
- KPBA – Rated idAAA(sf) On Pertamina Backing
- MDIN – Assigned idA- Rating, Stable Outlook
Regards, Aldiracita Research
