Dovish the Fed, closes FFR 2022 at 4.5%. For the rest of the year, the Fed could consider a smaller FFR hike (Surv. +50Bps) in December, after talk of a +75Bps hike to 4% in November. Meanwhile, selective Risk-On occurred in the bond market, the yield of short tenor UST2Y fell 10 bps to a level below 4.5%. On the other hand, expectations of the Dovish Fed pressured the Safe Haven USD indicator, DXY dropped to 111 points after approaching its high of 114 points.
Corporate Bonds
Tower Bersama Issues IDR 1 Trillion Bonds. PT Tower Bersama Infrastructure Tbk. (TBIG) announced that it has completed the issuance of Shelf-Registered Bonds V Phase V Year 2022 in the IDR 15 trillion bond program. In more detail, the total issuance of TBIG V Phase V Bonds is IDR 1.0 trillion at a fixed interest rate of 5.25% for a 370-day tenor. Meanwhile, the use of funds from this offering will be used to partially repay the financial obligations of the Company’s subsidiaries, in particular the USD 375 million revolving loan facility from existing credit facilities. (Bisnis Indonesia)
Domestic Issue
The Mainstay Sector to Pursue Tax Deposit Target. The government said that the mainstay sectors of tax revenue in the rest of 2022 are the mining, industrial, trade, and transportation sectors. Sectors that indeed had good tax deposit performance. As of September 2022, the government has pocketed a total tax revenue of IDR 1,310.5 trillion, reaching 88.30% of the government’s target which is IDR 1,485.0 trillion. (Kontan)
Recommendation
Investors eyed on Eurozone and US manufacturing data, amid the risk of a global economic recession in 2023. Based on a Bloomberg survey, S&P Global Eurozone Mfg. PMI Oct. projected to register a deeper contraction, or to be at the level of 47.9 (Vs. Sept. 48.4). Meanwhile, S&P Global US Mfg. PMI is projected to continue to expand, or to be at level 51 (Vs. Sept. 52) in the same period. Market sentiment this week is dominated by the release of external economic data.
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