INDON Curve Bear-Steepens, Spreads Tighter

The INDON sov curve has bear-steepened today, yields are 2-9bps higher largely mimicking moves in the US treasury market. There has been little in the way of headlines today, late on Tuesday Indonesia sold 22T Rupiah of Bonds/T-Bills.

• The INDON curve has bear-steepened, the 2Y yield is +2.5bps at 5.305% and now trade back at May 2nd levels, 5Y yield is +6bps at 5.16%, the 10Y yield is +6bps at 5.25%, while the 5-year CDS is 0.5bp at 71.5bps.
• The INDON to UST spread diff the 2Y is now 33.5bps (-2bps), 5yr is 56bps (-3bps), while the 10yr is 68.5bps (-4bps).
• In cross-asset moves, USD/IDR is 0.43% higher at 16,159, the JCI is down 1.65% Palm Oil is 1.45% higher, while US tsys yields are 0.5-2bps higher, curve flatter.
• Indonesia sold 22T Rupiah on Tuesday, total bids were 47.1T, foreign investors accounted for 14.68% of total bids and were awarded 21.53% of total issuance.
• Looking ahead, calendar is empty for the week