Indon Sov Curve Flattens, Foreign Investors Continue To Sell Bonds

Indonesian USD sovereign debt yields have bull-flattened following moves overnight in US treasuries although have under-performed them slightly, with Indon yields 0-4 bps lower today vs the 0-7bps lower from US tsys.

• The 2Y yield is unchanged at 4.88%, 5Y yield is 3bps lower at 4.88%, the 10Y yield is 4 bps lower at 4.96%, while the 5-year CDS is up 0.50bp to 71bps.
• The spread difference between USD Indonesian and US Treasury yields have continued to move tighter over the past month with the 2yr now 31bps, 5yr now 31bps, while the 10yr has drifted wider now 84bps.
• In cross-market moves, the USD/IDR is 0.24% lower, the JCI is 0.40% higher, while US Tsys yields are 1-2bps higher
• Foreign investors sold Indonesian debt again on Wednesday at a net flow of -$180m. Short-term, investors have largely been sellers, with a 20-day average daily flow currently at -$30m, while longer-term trends still remain positive with the 100-day average at +$5.20m.
• On Wednesday, Deputy Party Chair Rahayu Saraswati Djojohadikusumo, said the free schools meal program presumed incoming President Prabowo Subianto will implement will add 2.6% to economic growth when fully implemented by 2029. The program will included 48,000 kitchen and create 2.5m jobs, with produce coming from local farms.
• Earlier Indonesian Feb Foreign reserves fell to $144b from $145.1b prior.