DAILY OUTLOOK
Indonesia’s 10-year SUN yield fell 1.6bps to 7.097% as Bank Indonesia held the BI-Rate at 5.75%, while JISDOR strengthened 80 points to IDR 17,803/USD and the ICBI rose 0.30%. However, the US 10-year Treasury stood at 5.112%, near its highest since 2007 after a weak five-year auction, compressing the SUN-UST spread to 198.5bps. We expect the 10-year SUN at 7.08%-7.18% today, with upside risk as the UST selloff and elevated oil prices weigh on sentiment. With FR0094 the only Cheap series on our valuation screen, we prefer short-to-medium tenors and avoid adding long duration until global yields stabilise.
NEWS HIGHLIGHTS
- Global – Fitch Lifts Metals Price Assumptions
- Global – Iran Defies US Ahead Of Talks
- Global – Treasury Yields Hit 2007 Highs
- Global – US, China Extend Trade Truce
- PALM – Readies Bond Repayment
- SMRA – Rating Affirmed At idA+
Regards, Aldiracita Research
