UST10Y Yield Back to 3%, ahead of US May MoM CPI which is projected to rebound (Cons. 0.7%; Vs. Apr. 0.3%), next Friday. UST10Y Yield rose 10.5 bps from the weekend, putting pressure on the Dow Jones which had shot up 300 points in early trading. Previously, a strong US labor market supported by May Change in Nonfarm Payrolls data which increased 390k, with the May Unemployment Rate remaining low at 3.6%, indicate the US economy is ready for a more aggressive FFR hike. Meanwhile, the relaxation of China’s Zero Covid became a positive trade sentiment, amid the China Services PMI (41.4) and Composite PMI (46.0) May data, or contracted for the third month in a row.
Non-Cyclical Cons. sector relatively outperformed other sectors amid potential economic pressures, making this sector gain 0.62%. Yesterday, the JCI weakened 1.2%
to close below the psychological 7,100 level, with foreign investors recording a net buy of IDR 396 billion. The contraction is in line with increased GIDN10Y yield increase by 3 bps and rupiah which was depreciated by 0.2% against USD. The JCI, which was moving higher before the closing, resulted in NHKSI Research projection that it will move upwards (rebound) today, within a range of 7,000-7,260.
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