Today’s Outlook:
US MARKETS: Investors were no longer too fixated on the contents of the Fed’s January Minutes which showed that most central bank officials were still hesitant to cut interest rates immediately. Policymakers are also unsure how long the tight monetary policy will last. US Treasury yields reacted by remaining at intraday highs, where the rate-sensitive 2-year bond rose 4bps to 4.655%. Important economic indicators to look forward to tonight: Initial Jobless Claims (consensus: 218k versus previous: 212k), S&P Global US Manufacturing PMI (Feb), Existing Home Sales (Jan), and Crude Oil Inventories.

ASIAN & EUROPEAN MARKETS: DATA PMI day will also be awaited in a number of Asian & European countries, such as Japan, Germany, Eurozone, and the UK. More importantly, the Eurozone will announce its January Inflation rate which is expected to be around 2.8% yoy, cooling slightly from the previous month’s 2.9%.

INDONESIA: The central bank set BI7DRR to remain at 6.0% with benchmark deposit and lending rates unchanged at 5.25% and 6.75% respectively.

Corporate News
Holds Right Issue Permit, PYFA to Offer IDR 400 Billion Bonds Pyridam Farma (PYFA) will offer debt securities with a principal amount of IDR 400 billion. The sustainable bonds I phase III in 2024, carries an interest rate of 9.50 percent per year with a duration of two years. The first interest will be paid May 23, 2024. The bonds carry an idBBB+ rating from Kredit rating Indonesia. Underwriters are Aldiracita Sekuritas Indonesia, and Sinarmas Sekuritas with trustee Bank KB Bukopin (BBKP). The bond public offering period is February 21-22, 2024, and the listing on the IDX is on February 28, 2024. About 60 percent of the proceeds from the bonds will be used for working capital and operational costs. While the rest is for capital expenditure. Previously, this pharmaceutical issuer, had pocketed the blessing to hold a maximum rights issue of 16 billion shares with a nominal value of IDR 100 per share. (Emiten News)

Domestic Issue
Pefindo Says No Leasing Company Has Issued Green Bonds Yet PT Pemeringkat Efek Indonesia (Pefindo) said there are no multifinance or leasing companies that have taken funding through sustainable bonds or green bonds. Pefindo’s Economic Research Division Ahmad Nasrudin said that the multifinance industry focuses more on commercial financing, such as motor vehicle financing. Ahmad said that in the productive sector, the main segments of the financing industry are the commodity, mining and construction sectors. According to him, these segments are quite sensitive to sustainability issues. However, Pefindo does not deny that there is room to provide sustainable loans in the productive sector to finance companies that operate in an environmentally friendly manner. It takes a long time to effectively encourage multifinance companies to issue debt securities in the domestic market. (Bisnis)


Awaiting a break out of US10YT above yield 4.332% – 4.40% to continue the rise towards the TARGET of INVERTED HEAD & SHOULDERS pattern around yield 4.664%. ADVISE: AVERAGE UP accordingly. Support: yield 4.282% – 4.173%.

ID10YT has the potential to close the GAP that occurred yesterday with a pullback to the nearest support, which is a series of three Moving Averages around the yield: 6.636% – 6.614%. ADVISE: if any, use the weakening momentum as an opportunity to BUY ON WEAKNESS. TARGET yield: 6.75%.

Download full report HERE.