IDR: Rupiah Gives Back Early Gains as Tariff Loom Large.     

• USD/IDR followed regional peers to gap lower at the open lower, reaching 16,304, before giving back some of the early gains.  Mixed reports continue as to whether tariffs on China are on the table and the rupiah is now giving back some of the positive sentiment seen at the open.
• USD/IDR is higher at 16,336 in Jakarta morning versus yesterday’s close of 16,335.  
• The rupiah remains well above the 16,000 and moves in recent days has pulled back from approaching 16,400 in this move.      All major technicals are trending upwards with the 20-day EMA at 16,236 and the 200-day EMA at 15,851.
• Bloomberg Asia dollar spot index is down by -0.01% and the Bloomberg Dollar spot index is up +0.07%.
• USD/IDR one-month implied volatility is down this morning to 6.935%, versus 7.40325% for yesterday’s close.
• Indonesia's 10-year bond yield is at 7.128%.
• Indonesia 5 yr USD CDS at 73bps (Tuesday’s close 75bp, 5-year low 58bps in 2020).

Headlines

• Indonesia's government plans to require commodity exporters to keep their entire foreign currency-denominated earnings onshore for at least a year. (source: BBG).
• Indonesia's domestic carbon exchange, IDXCarbon, has opened to foreign participants, aiming to restore the country's position as a major hub for carbon offsets and attract more investment for local climate action. (source: BBG)

Government Bond Issuance Today.