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INDON Sov Curve Steepens Ahead Of BI Decision

INDONESIA
Data BulletEM BulletDataHomepagemarkets-real-timeBulletEmerging Market News

The INDON sov curve has bear-steepened today. Calendar is empty today, as we await the BI rate decision on Wednesday, the market expected rates to be left on hold tomorrow after the surprise 25bps rise last month, the USDIDR is up 0.30% and holds above 16,000.

  • The INDON curve has bear-steepened today, yields are 1-3bps higher, the 2Y yield is 1bp higher at 5.255%, 5Y yield is 1.5bp higher at 5.07%, the 10Y yield is 2.5bps higher at 5.16%, while the 5-year CDS is 0.5bp higher at 70.5bps.
  • The INDON to UST spread diff the 2Y is now 42bps (unchanged), 5yr is 61bps (-1bps), while the 10yr is 72bps (Unchanged).
  • In cross-asset moves, USD/IDR is up 0.30% at 16,004, the JCI is down 0.53% Palm Oil is 0.51% higher, while US tsys yields are flat to 1.5bps higher.
  • BI Rate decision tomorrow - Bank Indonesia is expected to keep its key rate at 6.25% following last month's unexpected rate hike. The rupiah, down 3.6% against the dollar this year, has recovered some losses after April's decline. BI's tightening aims at rupiah stability rather than curbing domestic demand. Despite inflation at 3.0% in April, above BI's target range, rising oil, food, and shipping costs suggest that tight policy will continue through the summer.
  • Looking ahead; Bank Indonesian rate decision on Wednesday
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The INDON sov curve has bear-steepened today. Calendar is empty today, as we await the BI rate decision on Wednesday, the market expected rates to be left on hold tomorrow after the surprise 25bps rise last month, the USDIDR is up 0.30% and holds above 16,000.

  • The INDON curve has bear-steepened today, yields are 1-3bps higher, the 2Y yield is 1bp higher at 5.255%, 5Y yield is 1.5bp higher at 5.07%, the 10Y yield is 2.5bps higher at 5.16%, while the 5-year CDS is 0.5bp higher at 70.5bps.
  • The INDON to UST spread diff the 2Y is now 42bps (unchanged), 5yr is 61bps (-1bps), while the 10yr is 72bps (Unchanged).
  • In cross-asset moves, USD/IDR is up 0.30% at 16,004, the JCI is down 0.53% Palm Oil is 0.51% higher, while US tsys yields are flat to 1.5bps higher.
  • BI Rate decision tomorrow - Bank Indonesia is expected to keep its key rate at 6.25% following last month's unexpected rate hike. The rupiah, down 3.6% against the dollar this year, has recovered some losses after April's decline. BI's tightening aims at rupiah stability rather than curbing domestic demand. Despite inflation at 3.0% in April, above BI's target range, rising oil, food, and shipping costs suggest that tight policy will continue through the summer.
  • Looking ahead; Bank Indonesian rate decision on Wednesday