Indon Sovereign Debt Curves Bull Flatten As Foreign Investors Buy

Indonesian USD Sovereign Debt curves are bull flattening as trading kicks off for the week, with yields +2 to - 4bps across the curve, out-performing US treasuries.

• The 2Y is 1.8bp higher at 4.800%, 10Y is -3bps lower at 4.961%, while 5yr CDS are down unchanged to 69.25bps
• The spread difference between USD Indon & US Treasury yields has closed over the past month with the 2Y now 33bps, while the 10Y is now 79bps moving 4bps wider over the past month
• Cross market moves, the USD/IDR is 0.13% higher, the JCI is 0.05% lower, whilst US Tsys are 1-2bps higher.
• Foreign Investors bought Indonesian Debt on Thursday with $106m flowing in, the highest Since Mid January, however investors have largely been better sellers of Indonesian bonds over the past month as the 20-day average daily flow currently at -$38m.
• Looking Ahead: It's a quiet Calendar this week, other than on Tuesday when 108D bills to 25Y Sukuk Bonds are sold, while Foreign Reserves are due on Friday.