July 31, 2024 05:49 GMT
Asia Sov Curve Twist-Flatten, Indonesian CPI Tomorrow
ASIA RATES
Asia sovereign curves have twist-flattened today, there has been plenty of data out in the APAC region, headlined by the BOJ, while we now look ahead to the BOE & Fed up next. Looking locally, we have Hong Kong & Taiwan GDP and Thailand Trade Balance data out a bit later.
INDONESIA
- INDON curve has twist-flattened today, with better buying seen through the belly of the curve, the 2yr is 4.987% (-0.5bp), 5yr 4.852% (-2.5bps), 10yr 4.970% (-2bps).
- Indonesian CPI is due out on Thursday, consensus is for a slight decrease to 2.38% from 2.51% previously.
PHILIPPINES
- PHILIP curve has also twist-flattened today and has outperformed the INDON curve after underperforming over the past week or so, the 2yr is 5.0165 (-2bps), 5yr 4.911% (-3.7bps), 10yr 4.999% (-2.6bps)
- The BSP forecasts July inflation in the Philippines to rise to 4.8% due to higher power and food prices, exceeding the government’s target range of 2% to 4%. Despite this peak, the BSP expects inflation to return to within the target range by August 2024, with the policy rate likely remaining on hold until then.
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