INDON/PHILIP Sovs Tighten Through the Front-End

Asian EM Sovs have seen better buying through the belly of their curves today, yields are flat to 5bps lower. Expectations of lower US rates are fueling the moves in EM sovs today.

• The INDON curve has seen better buying in the 7yr tenor, and currently trade about 5bps lower, while the PHILIP curve has seen better buying in the 10-15yr tenors although the curve has underperformed the INDON curve today.
• ID-US & PH-US spread diffs have tighten about 15bps through the front-end over the past week
• Local currencies continue to trade near yearly lows, with the IDR at 16,262, while the PHP is trading at 58.11.
• Indonesia's Consumer Confidence Index dropped to 123.3 in June from 125.2 in May, reflecting decreased consumer optimism. The Current Economic Condition Index fell to 112.9 from 115.4, and the Consumer Expectation Index slipped to 133.8 from 135. The Job Availability Index declined to 106.8 from 113.6, while the Current Income Index rose to 120.8 from 119.9.
• The Philippines' unemployment rate increased slightly to 4.1% in May from 4% in April, according to preliminary data from the Philippine Statistics Authority. This is a decrease from 4.3% in May 2023 and matches the consensus forecast. The number of unemployed persons in May was 2.11 million, down from 2.17 million a year ago. The employment rate was 95.9% in May, slightly lower than April's 96%.
• Today, we have Indonesian Finance Minister & BI Government speaking