Rupiah depreciated as DXY strengthened towards the 109 level. The benchmark 10-year SUN recorded a yield increase of more than 10 bps. Yesterday’s market movement, amid the rupiah exchange rate which is approaching the level of IDR14,900/USD. CPI Aug. which is projected to exceed 5% YoY, is one of the factors that BI begins to tighten Monetary Policy. Meanwhile, the absence of an increase in Administered Prices for the August period has the opportunity to make this period record -0.15% MoM deflation, making NHKSI Research view the BI 7DRRR +25Bps increase as the right action, while maintaining the momentum of FY22E GDP growth above 5%.

Corporate Bonds
Global Mediacom Issues IDR 1 Trillion Bonds and Sukuk. PT Global Mediacom Tbk (BMTR) will issue bonds totaling IDR 1 trillion. These notes consist of bonds with a value of IDR 600 billion and sukuk of IDR 400 billion. Global Mediacom will issue Global Mediacom Phase II 2022 Shelf-Registered Bonds III in three series. BMTR will also issue Global Mediacom Phase II Sustainable Sukuk Ijarah III 2022 in three series. (Kontan)

Domestic Issue
Indonesia to Shift USD1.6Bn Portion of Fuel Subsidy Budget. Indonesia will reallocate 24.17 trillion rupiah (USD1.62Bn), or nearly 5%, of its fuel subsidy budget to social spending, including cash handouts to 20.65 million households, its finance minister said on Monday. The move comes amid reports that the government has been considering raising subsidised fuel prices to manage rising fiscal pressure due to high global energy prices. (Reuters)

Double Combo of inflation and rising fuel prices, challenges the SUN market entering the month of September. In addition to Powell’s aggressive Hawkish speech at the Jackson Hole symposium last Friday, the tug of war on the increase in the amount of Pertalite and Solar subsidized fuel prices weakened the benchmark SUN. Meanwhile, the current market movement, amid the lack of economic data sentiment.

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