DAILY OUTLOOK
SUN 10Y yield rose 9.2bps to 7.451% on Friday as MSCI downgrade concerns drove broad risk-off, with the 5Y up 22.1bps, while UST 10Y eased 1.2bps to 5.060%, widening the SUN-UST spread to 239.1bps. JISDOR weakened to IDR 18,052/USD. Softer oil after the US waiver of Russia sanctions offers some relief, but Tuesday’s IDR 10tn sukuk auction and Wednesday’s BI board meeting will set direction. We expect SUN 10Y to trade at 7.38-7.52% today. FR0094 and FR0090 screen Cheap at the short end, while the belly and long end remain Fair.
NEWS HIGHLIGHTS
- Global – BoC Flags Sharply Higher Inflation Outlook
- Global – BOJ Sees Inflation Near 2% Target
- Global – IMF Panel Flags Bond Yield Risks
- Global – Iran Keeps Hormuz Reopening Offer Open
- Global – Lagarde Sees Bond Selloff Curbing Inflation
- Global – Oil Falls On Russia Sanctions Waiver
- Global – US Interest Costs Hit Record High
- Bond – SBR015 Sales Reach 55% Of Target
- Bond – Sukuk Auction Targets IDR 10tn Tuesday
- BVIC – Readies IDR 154bn Subordinated Bond Repayment
Regards, Aldiracita Research
