USD/IDR Back Close To Monday Highs, BI Governor Speaks Later

USD/IDR, like elsewhere in the region, is seeing upside pressure. The pair was last near 15940, up +0.40% on closing levels yesterday. This puts us close to Monday highs just above 15960, which prompted BI intervention.

• We did see a fresh cyclical high in US real yields in Wednesday trade. The 10yr getting to +2.52%. Indonesian 5yr CDS has rebounded, back up to 102.5bps.
• Local equities are off -0.70% in the first part of trade today. Offshore investors have been net sellers of local equities so far this week (-$74.5mn). Outflows have also been seen from local bonds (-$314.7mn).
• The Finance Ministry noted late yesterday that the government can scale back bond sales due to a lower than expected fiscal deficit this year (see this BBG link). Local 10yr government bond yields finished yesterday at 7.34%. We sit just below recent highs close to 7.40%.
• Note we will hear from BI Governor Warjiyo who speaks later (2pm local time at the Indonesia Sharia Economy Festival).