Indonesian Sov Debt Curve Flattens, Bond Demand Drops

Indonesian USD sovereign debt curve is slightly flatter today, yields are 1-3bps lower. Indonesian bond demands sinks on the incoming Presidents pledge to boost spending.

• The INDON sov curve is flatter with the 2Y yield 1bp lower at 4.92%, 5Y yield is 1.5bps lower at 4.865%, the 10Y yield is 2bps lower at 4.995%, while the 5-year CDS is unchanged at 72.5bps
• The INDON to UST spread is slightly tighter in the front-end today after US Treasury curve bear steepened on Feb Gov Wallers comments earlier, the 2yr is 31bps (-3bps), 5yr is 64.5bps (-1bp), while the 10yr is 78.5bps (+1bps).
• In cross-asset moves, the USD/IDR is 0.09% higher, the JCI is 0.11% lower, Palm Oil is unchanged, while US Tsys yields are flat to 4bps higher.
• The most recent data shows an outflow of $335m on Monday. The 5-day average is now -$86m, the 20-day average is -$57m while the longer term 200-day average is -$3.10m
• (Bloomberg) -- Indonesian Bond Demand Sinks Amid Fears Over Widening Deficit (See link)
• 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