Yield inversion patterns in UST2Y (3.35%) and UST10Y (3.36%) were formed, one of the indicators of recession. Even though there is no negative spread yield yet, UST2Y yield rose +30bps, more aggressive than UST10Y which was up +20bps. Wall Street was depressed earlier in the week, with the Nasdaq down as much as 4.6%, ahead of the FOMC Rate Decision (Cons. 1.25%-1.50%) meeting this week. Bond yield inversion indicates investors are anticipating risk in the near term, and are more
interested in long tenor instruments. The previous yield inversion occurred in April, or after the US announced high inflation in March.

The limited decline in the second session yesterday pushes NHKSI Research to project the JCI has the potential to move upwards (rebound), in the range of 6,900-
7,150. At the beginning of the week, the JCI weakened by 91 points, closing below the 7,000 level, as the depreciation of the rupiah approached the psychological level
of IDR 14,700/USD. The USD index strengthened to 105.0 following the release of the high US May CPI inflation data (1.0% MoM; 8.6% YoY), and amid the Hawkish stance of the Fed at the end of 2Q22. There was also pressure on the bond market, with the benchmark 10-year FR0091 SUN posting a yield increase of more than 15bps to 7.34%

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