INDON Sov Curve Little Changed, Foreign Reserves Increase

It has been a slow session in Asia EM rates today, curves are little changed with the small moves occurring happening in the 7yr part of curves, continuing recent trends. Earlier, we had Indonesian May Foreign Reverses which showed an increase to $139b from yearly lows of $136.2 in April.

• The INDON curve has tighten today, yields are flat to 3bps lower. The 2Y yield is unchanged at 5.25%, 5Y yield is -1bps at 5.00%, the 10Y yield is -1bp at 5.075%, while the 5-year CDS is 0.5bp lower at 71.5bps.
• Since yields hit recent highs, the 7yr has outperformed and trades 31bps lower vs 25bps tighter by UST.
• The INDON to UST spread diff the 2Y is now 51.5bps (+0.5bp), 5yr is 70bps (unchanged), while the 10yr is 78bps (-1bps).
• In cross-asset moves, USD/IDR is 0.23% lower today at 16,222. The JCI is 0.50% lower and now trades at ytd lows. While tsys futures have edged lower throughout the day, with yields about 1bps higher.
• Looking ahead, there is little on the data calendar, with a bond auction on Tuesday the major focus.