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Indon Sov Debt Yields Steady,Foreign Investors Continue to Sell Bonds

INDONESIA
EM BulletDataHomepagemarkets-real-timeData BulletBulletEmerging Market News

Indonesian USD sovereign debt curve is little changed on Friday, yields are flat to 1bp higher. There has been very little in the way on any market drivers, or bond issuance. Looking back over the past week yields are 1bps higher to 8bps lower as curves bull flatten. The BI kept rates on hold at 6% as they wait for the Feb to start cutting, while Prabowo's Presidential Election win is being questioned by a rival in court, while foreign investors continue to sell Indonesian bonds.

  • The INDON sov curve is largely unchanged on Friday with the 2Y yield is unchanged at 4.94%, 5Y yield is 1bps lower at 4.91%, the 10Y yield is 0.5bp higher at 5.01%, while the 5-year CDS is also unchanged at 71.5bps
  • The INDON to UST spread difference tighter on Thursday as the UST front end widen a touch the 2yr is 32bps (-3bp), 5yr is 67.5bps (-2.5bps), while the 10yr is 75.5bps (-1bps).
  • In cross-asset moves, the USD/IDR is 0.69% higher, the JCI is 0.08% lower, Palm Oil is up 0.9%, while US Tsys yields are 1-2bps lower.
  • Foreign Investors sold bonds again on Wednesday now marking 10 of 11 days of net selling. The 5-day average is now -$21m, the 20-day average is -$51m while the longer term 200-day average has turned negative at -$0.90m
  • Foreign investors have now withdrawn $1.1 billion from Indonesian bonds since the February 14th election, reflecting concerns over incoming President Prabowo Subianto's ambitious spending plans, including a proposed free school lunch program. Despite Subianto's pledge to maintain fiscal discipline, his proposed spending spree, estimated at 460 trillion rupiah ($29 billion), has raised worries among investors about potential fiscal loosening. Meanwhile, uncertainties surrounding cabinet appointments and legal challenges disputing the election results add to investor apprehension.
  • Earlier, Indonesia's Feb Broad money supply rose 5.3% y/y, vs 5.4% y/y on Jan
  • Looking ahead: Indonesia has a very quiet rest of the month in terms of data, with the next major data release not until April 1st
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Indonesian USD sovereign debt curve is little changed on Friday, yields are flat to 1bp higher. There has been very little in the way on any market drivers, or bond issuance. Looking back over the past week yields are 1bps higher to 8bps lower as curves bull flatten. The BI kept rates on hold at 6% as they wait for the Feb to start cutting, while Prabowo's Presidential Election win is being questioned by a rival in court, while foreign investors continue to sell Indonesian bonds.

  • The INDON sov curve is largely unchanged on Friday with the 2Y yield is unchanged at 4.94%, 5Y yield is 1bps lower at 4.91%, the 10Y yield is 0.5bp higher at 5.01%, while the 5-year CDS is also unchanged at 71.5bps
  • The INDON to UST spread difference tighter on Thursday as the UST front end widen a touch the 2yr is 32bps (-3bp), 5yr is 67.5bps (-2.5bps), while the 10yr is 75.5bps (-1bps).
  • In cross-asset moves, the USD/IDR is 0.69% higher, the JCI is 0.08% lower, Palm Oil is up 0.9%, while US Tsys yields are 1-2bps lower.
  • Foreign Investors sold bonds again on Wednesday now marking 10 of 11 days of net selling. The 5-day average is now -$21m, the 20-day average is -$51m while the longer term 200-day average has turned negative at -$0.90m
  • Foreign investors have now withdrawn $1.1 billion from Indonesian bonds since the February 14th election, reflecting concerns over incoming President Prabowo Subianto's ambitious spending plans, including a proposed free school lunch program. Despite Subianto's pledge to maintain fiscal discipline, his proposed spending spree, estimated at 460 trillion rupiah ($29 billion), has raised worries among investors about potential fiscal loosening. Meanwhile, uncertainties surrounding cabinet appointments and legal challenges disputing the election results add to investor apprehension.
  • Earlier, Indonesia's Feb Broad money supply rose 5.3% y/y, vs 5.4% y/y on Jan
  • Looking ahead: Indonesia has a very quiet rest of the month in terms of data, with the next major data release not until April 1st