INDON Sov Curve Flatter, IDR Bond Auction, Microsoft AI Investment

The Indonesian sov curve has bull-flattened again today with yields 1-4bps lower. Indonesia is scheduled to sell 5yr-30yr local debt shortly and is targeting a raise of about 23 trillion rupiah across the curve with most demand expected in the 5- and 10-year lines as yields both tradw above 7%.

• The INDON sov curve is flatter today, the 2Y yield is unchanged at 5.33%, 5Y yield is 1.5bps lower at 5.36%, the 10Y yield is 2.5bps lower at 5.425%, while the 5-year CDS is down 0.5bps at 75.5bps.
• The INDON to UST spread diff was little changed during the US session on Friday, the 2Y is now 34.5bps (-0.5bp), 5yr is 71.5bps (+2bps), while the 10yr is 81.5bps (+1bp)
• In cross-asset moves, the USD/IDR is up 0.10% at 16,268, the JCI is 1.27% higher, Palm Oil 1.78% lower, while US Tsys yields are flat to 0.5bp lower.
• Foreign Investors have sold $239m of Indonesian Bonds on Monday, the most in over a month, taking the total outflow for April to $1b in a shortened Month, with the 5-day average is now -$81m, vs the 20-day average at -$75m, while the 100 & 200-day averages are about -$8m.
• Microsoft's CEO announced a $1.7 billion investment in AI and cloud computing for Indonesia during a meeting with President Joko Widodo, aiming to bolster the country's tech infrastructure. Nadella also pledged to train about 840,000 Indonesians in AI, emphasizing Microsoft's commitment to the region's technological advancement.
• Looking forward, S&P Global Indonesia PMI Mfg and CPI on Thursday