The US employment data duo turned out better than expected, namely ADP Nonfarm Employment Change (Dec.) of 235K, higher than the forecast of 150K and the previous period of 182K; while Initial Jobless Claims recorded at 204K and 223K. This data reinforces the idea that the Fed must work harder to create a balance between supply and demand in a tight labour market condition, which risks the chance of driving up the workers’ wages. Thus, the inflation factor that has to be fought with aggressive interest trends is still haunting the US economy. The data update also pushed up Treasury yields, which slammed the Technology sector.

Corporate News
MNC Capital Offers IDR450 Billion Bonds. PT MNC Kapital Indonesia Tbk has conducted a public offering of Sustainable Bonds III MNC Kapital Indonesia Phase I Year 2022 worth IDR450 billion on January 4-5, 2023. The bonds are offered in three series. Series A, which value is IDR231 billion and a fixed interest rate of 10.5%/year up to maturity within 370 days after issuance. Series B, worth IDR60.42 billion, has an interest rate of 11.25%/year up to maturity within the next three years. Then, series C, worth IDR55.17 billion, has an interest rate of 12%/year up to its maturity in 5 years. As for the rest, IDR103,12 billion is offered in the best possible way. (Emiten News)

Domestic Issue
Sun Auction Enthusiast is Still Few The initial Government Bond (SUN) auction in 2023 enthusiast is still few, with the total incoming bids reaching IDR28.31 trillion and the Government then absorbing as much as IDR19.20 trillion. This bid is lower than the average incoming bid in 2022 of IDR44 trillion, yet if compared to the last auction at the end of December 2022, the bids entered this time are slightly rise. The low bid is caused by investors that choose to Wait and See for the prospects of the bond market that might be beneath the shadow of high inflation. At this auction, investors are also hunting for the 10-year benchmark FR0096 and FR0095 as the 5 year benchmark. (Kontan)

ID10YT pullback towards the nearest support i.e. MA10 & MA20 in the range 6.97-6.94. Both MAs are already golden cross so it is felt to be able to provide a platform for a short-term Uptrend. It is recommended to Buy On Weakness when the yield reaches the Support area, with the nearest TARGET around 7.023-7.053 (MA50 Resistance). US10YT is still quite orderly in its Uptrend above MA20 & MA50 Support around 3.71-3.69, while MA10 serves as the nearest Resistance at 3.79, before trying to close the 3.88 Gap and a little more towards the previous High level of 3.90. After this high, the US10YT yield is projected to be able to go higher towards the TARGET/next resistance: 4.0/4.23/4.29- 4.34. Advise: do a Speculative Buy, and Gradual Average Up ahead of US Non-farm Payroll and Unemployment Change data announcement later tonight.

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