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INDON Curve Flattens, Current Account Deficit Widens

INDONESIA
Data BulletEM BulletDataHomepagemarkets-real-timeBulletEmerging Market News

The INDON sov curve has bear-flattened today. Today, we had Indonesia’s current-account deficit, which widened to the largest shortfall in three quarters on weaker exports.

  • The INDON has twist-steepened today the 2Y yield is 2bp higher at 5.24%, 5Y yield is 0.5bp higher at 5.045%, the 10Y yield is 1bps higher at 5.135%, while the 5-year CDS is unchanged at 70bps.
  • The INDON to UST spread diff the 2Y is now 42bps (-2bp), 5yr is 62bps (-2.5bps), while the 10yr is 72bps (-2bp).
  • In cross-asset moves, USD/IDR is up 0.14% at 15,977, the JCI is down 0.18% Palm Oil is 1.18% higher, while US tsys yields are flat to 2.5bps lower
  • Indonesia's current-account deficit widened to $2.2 billion (0.6% of GDP) in Q1, higher than the forecasted $1.9 billion, due to weaker exports. The balance of payments also shifted to a $6 billion deficit from an $8.6 billion surplus in the previous quarter, putting pressure on the rupiah, which recently rebounded from a four-year low. The central bank anticipates the current-account deficit will range between 0.1%-0.9% of GDP this year. The rupiah weakened slightly to 15,978 per dollar amid these developments.
  • Looking ahead; Bank Indonesian rate decision on Wednesday
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The INDON sov curve has bear-flattened today. Today, we had Indonesia’s current-account deficit, which widened to the largest shortfall in three quarters on weaker exports.

  • The INDON has twist-steepened today the 2Y yield is 2bp higher at 5.24%, 5Y yield is 0.5bp higher at 5.045%, the 10Y yield is 1bps higher at 5.135%, while the 5-year CDS is unchanged at 70bps.
  • The INDON to UST spread diff the 2Y is now 42bps (-2bp), 5yr is 62bps (-2.5bps), while the 10yr is 72bps (-2bp).
  • In cross-asset moves, USD/IDR is up 0.14% at 15,977, the JCI is down 0.18% Palm Oil is 1.18% higher, while US tsys yields are flat to 2.5bps lower
  • Indonesia's current-account deficit widened to $2.2 billion (0.6% of GDP) in Q1, higher than the forecasted $1.9 billion, due to weaker exports. The balance of payments also shifted to a $6 billion deficit from an $8.6 billion surplus in the previous quarter, putting pressure on the rupiah, which recently rebounded from a four-year low. The central bank anticipates the current-account deficit will range between 0.1%-0.9% of GDP this year. The rupiah weakened slightly to 15,978 per dollar amid these developments.
  • Looking ahead; Bank Indonesian rate decision on Wednesday