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INDON Curve Twist-Steepens, Spread Diff Tightens, Samurai Bond Priced

INDONESIA
Data BulletEM BulletDataHomepagemarkets-real-timeBulletEmerging Market News

The INDON sov curve has twist-steepened today, pivoting at the 5yr. Looking back over the week yields are 9-13bps lower, with the majority of those moves coming on the back of US retail sales missing estimates. Looking ahead to next week we have the BI rate decision where they are expected to keep rate on hold after last month surprise increase.

  • The INDON has twist-steepened today the 2Y yield is 1bp higher at 5.215%, 5Y yield is 3bp lower at 5.04%, the 10Y yield is unchanged at 5.115%, while the 5-year CDS is unchanged at 70bps.
  • The INDON to UST spread diff the 2Y is now 44bps (-4bp), 5yr is 64.5bps (-10bps), while the 10yr is 74bps (-5bp).
  • In cross-asset moves, USD/IDR is up 0.28% at 15,970, the JCI is up 1.12% Palm Oil is 1.18% higher, while US tsys yields are flat to 2.5bps lower
  • Indonesia priced the largest Samurai bond offering since late 2022 on Friday, raising ¥200 billion ($1.3 billion) in a multi-part deal that included blue bonds for ocean conservation and climate change mitigation. The bond issuance comes as President-elect Prabowo Subianto plans to increase spending to boost Indonesia's $1.3 trillion economy, including constructing a new capital city. Despite higher yen interest rates following the Bank of Japan's policy changes, borrowing costs in yen remain lower than in other international markets. The Indonesian government aims to raise $32 billion this year and had already tapped the dollar market in January.
  • Looking ahead; Bank Indonesian rate decision next Wednesday
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The INDON sov curve has twist-steepened today, pivoting at the 5yr. Looking back over the week yields are 9-13bps lower, with the majority of those moves coming on the back of US retail sales missing estimates. Looking ahead to next week we have the BI rate decision where they are expected to keep rate on hold after last month surprise increase.

  • The INDON has twist-steepened today the 2Y yield is 1bp higher at 5.215%, 5Y yield is 3bp lower at 5.04%, the 10Y yield is unchanged at 5.115%, while the 5-year CDS is unchanged at 70bps.
  • The INDON to UST spread diff the 2Y is now 44bps (-4bp), 5yr is 64.5bps (-10bps), while the 10yr is 74bps (-5bp).
  • In cross-asset moves, USD/IDR is up 0.28% at 15,970, the JCI is up 1.12% Palm Oil is 1.18% higher, while US tsys yields are flat to 2.5bps lower
  • Indonesia priced the largest Samurai bond offering since late 2022 on Friday, raising ¥200 billion ($1.3 billion) in a multi-part deal that included blue bonds for ocean conservation and climate change mitigation. The bond issuance comes as President-elect Prabowo Subianto plans to increase spending to boost Indonesia's $1.3 trillion economy, including constructing a new capital city. Despite higher yen interest rates following the Bank of Japan's policy changes, borrowing costs in yen remain lower than in other international markets. The Indonesian government aims to raise $32 billion this year and had already tapped the dollar market in January.
  • Looking ahead; Bank Indonesian rate decision next Wednesday