MNI BRIEF: China Cities Must Ensure Housing Project Delivery

MNI BRIEF: PBOC Sets A New Tool To Bail Out Property Sector

MNI BRIEF: PBOC Abolishes Lower Housing Mortgage Limit

MNI BRIEF: China To Acquire Housing, Land Stocks From Developers

MNI BRIEF: China April Data Shows Insufficient Demand - NBS

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

EZ/UK T-Bill Calendar: Austria, Netherlands, ESM, France Monday

Final Data Confirms Broad Deceleration Seen In April Flash HICP

MNI: EUROZONE APR FINAL HICP +0.6% M/M, +2.4% Y/Y

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

INDON Sov Curve Flattens On Weaker US NFP, GDP Beats Estimates

INDONESIA
Data BulletEM BulletDataHomepagemarkets-real-timeBulletEmerging Market News

The Indonesian sov curve has flattened today, with the 5-7yr part of the curve seeing the most demand, after weaker-than-expected US NFP on Friday. Earlier, 1Q GDP was stronger-than-expected at 5.11% vs 5.08% and up from up from a 5.04% expansion in 4Q23.

  • The INDON sov curve is flatter today, the 2Y yield is 4bps lower at 5.24%, 5Y yield is 10bps lower at 5.23%, the 10Y yield is 8bps lower at 5.305%, while the 5-year CDS is down 1bp at 71bps.
  • The INDON to UST spread diff the 2Y is now 42.5bps (+2bp), 5yr is 73bps (-3bps), while the 10yr is 80bps (-1bp)
  • In cross-asset moves, the USD/IDR is down 0.38% at 16,023, the JCI is 0.23% higher, Palm Oil 0.08% higher, while US Tsys futures are little changed with cash trading closed as Japan is out.
  • Foreign Investors bought $236m of bonds on Friday, the most since Jan 6th. Apr saw the largest amount of selling by foreign investors since December with a total outflow of about $1b, although it should be noted the month was shorted by 6 days by public holidays. Flow momentum remains negative with the 5-day average now -$1.5m, vs the 20-day average at -$61m, while the 100 & 200-day averages are about -$9m.
  • Indonesian GDP grew by 5.11% year-on-year in the first quarter of 2024, exceeding consensus expectations. Government spending surged due to the election, while household spending also increased. However, investment and net exports slowed. Bank Indonesia's extension of loose macroprudential measures may support private consumption, but uncertainties related to the leadership transition and external factors could limit overall growth to 5% in 2024.
  • Looking ahead; Foreign Reserves on Wednesday.
278 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The Indonesian sov curve has flattened today, with the 5-7yr part of the curve seeing the most demand, after weaker-than-expected US NFP on Friday. Earlier, 1Q GDP was stronger-than-expected at 5.11% vs 5.08% and up from up from a 5.04% expansion in 4Q23.

  • The INDON sov curve is flatter today, the 2Y yield is 4bps lower at 5.24%, 5Y yield is 10bps lower at 5.23%, the 10Y yield is 8bps lower at 5.305%, while the 5-year CDS is down 1bp at 71bps.
  • The INDON to UST spread diff the 2Y is now 42.5bps (+2bp), 5yr is 73bps (-3bps), while the 10yr is 80bps (-1bp)
  • In cross-asset moves, the USD/IDR is down 0.38% at 16,023, the JCI is 0.23% higher, Palm Oil 0.08% higher, while US Tsys futures are little changed with cash trading closed as Japan is out.
  • Foreign Investors bought $236m of bonds on Friday, the most since Jan 6th. Apr saw the largest amount of selling by foreign investors since December with a total outflow of about $1b, although it should be noted the month was shorted by 6 days by public holidays. Flow momentum remains negative with the 5-day average now -$1.5m, vs the 20-day average at -$61m, while the 100 & 200-day averages are about -$9m.
  • Indonesian GDP grew by 5.11% year-on-year in the first quarter of 2024, exceeding consensus expectations. Government spending surged due to the election, while household spending also increased. However, investment and net exports slowed. Bank Indonesia's extension of loose macroprudential measures may support private consumption, but uncertainties related to the leadership transition and external factors could limit overall growth to 5% in 2024.
  • Looking ahead; Foreign Reserves on Wednesday.