DAILY OUTLOOK
Indonesian government bonds firmed slightly on Friday, with the 10-year SUN yield down 1.6bps to 7.097% and the ICBI up 0.01%, while JISDOR weakened 19 points to IDR 17,917/USD. The US 10-year Treasury eased 3.7bps to 5.160%, leaving the SUN-UST spread at 193.7bps. We expect the 10-year SUN at 7.05%-7.17% today, with upside risk from stalled US-Iran talks and renewed Gulf attacks keeping oil firm. With no series screening Cheap, we prefer short-to-medium tenors until global yields stabilise.
NEWS HIGHLIGHTS
- Global – Houthis Strike Riyadh, Ceasefire Rejected
- Global – Iran Holds Firm On Hormuz Terms
- Global – Treasury Curve Nears Inversion Signal
- BI – Draws IDR 15tn As Yields Fall
- Credit – FIF Tranche IV Bonds Get AAA(idn)
- Credit – SeaBank Gets First-Time AA+(idn) Rating
- WSKT – Downgraded To idCCC On Principal Deferral
Regards, Aldiracita Research
