Global Market Update

• On May 8th, 2023, the US Government Bond Yield for the 10-year bond increase to 3.507% compared to May 5th.
• During its May meeting, the European Central Bank increased its benchmark interest rates by 25 basis points, indicating a deceleration in the rate of monetary policy normalization. The trajectory of interest rates going forward will be contingent upon ECB’s assessment of economic conditions and inflationary pressures, as well as the efficacy of ECB’s interest rate increases in tempering inflation.
• The Japanese Ministry of Finance has announced that they will issue 10-year Japanese government bonds (JGBs) in May. The auction will take place on May 9, 2023, and the bonds will be issued on May 10, 2023. The maturity date for the bonds is March 20, 2033, and the total amount offered will be around 2,700 billion yen.

Sources: European Central Bank, Investing, Ministry Finance of Japan, and Binaartha.
 
Domestic Market Update

• On May 9th , 2023, the Indonesia Government Bond Yield for the 10 year bond decrease to 6.6365 % compared previous trading day.
• At the end of April 2023, Indonesia's foreign exchange reserves remained high at 144.2 billion US dollars, albeit slightly lower than the position at the end of March 2023, which stood at 145.2 billion US dollars.
• BPS' data for the first quarter of 2023 reveals that Indonesia's economy grew by 5.03% (yoy), a slight increase from the previous quarter's growth rate of 5.01% (yoy). The outlook for economic growth in 2023 is positive, with a predicted upper limit of 4.5-5.3%. This growth is driven by improvements in domestic demand and positive export performance.

Sources: Bank Indonesia, BPS, Investing and Binaartha.
Market Projection

• We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.622% - 6.719% for tomorrow. Recommendations: FR0067, FR0088, and FR0093.

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