DAILY OUTLOOK
Indonesia’s 10-year SUN yield fell 0.9bps to 7.101%, while the US 10-year Treasury declined 4.5bps to 4.951%, widening the calculated SUN-UST spread to 215.0bps. JISDOR weakened 68 points to IDR 17,813/USD, limiting the benefit from lower global yields. WTI was broadly steady at USD 95.75/bbl, while the ICBI gained 0.09%, signalling resilient domestic demand. We expect the 10-year SUN at 7.06%-7.16% today with a neutral-to-cautiously constructive bias. Prefer short-to-medium duration, particularly FR0094, which remains Cheap at 7.162% YTM. Maintain selective long-end exposure as rupiah weakness and geopolitical oil risks could cap further gains across the curve.
NEWS HIGHLIGHTS
- Global – Libya Output Slumps After Shutdown
- Global – US-China Talks Turn Positive
- Global – US Plans Reconstruction Fund
- Danantara – Fitch Affirms BBB Rating
- Credit – HK Prepares IDR 1tn Repayment
- Credit – Pindo Deli Readies Maturities
- Credit – Salak-Darajat Notes Stay BBB-
- Credit – Wayang Windu Notes Stay BB
- WIKA – Sukuk Cut to Default
Regards, Aldiracita Research
