Investors are watching the US Manufacturing data. All SUN Benchmarks recorded an increase in yield yesterday. US S&P Global data shows Mfg. PMI Oct. started contracting or was at the level of 49.9 (Vs. Sept. 52), indicating the Fed has succeeded in slowing down domestic business activity. The services sector contracted deeper, or the Services PMI fell to a level of 46.6 (Vs. Sept. 49.3), at the same time making the Composite PMI contracted to a level of 47.3 (Vs. 49.5), raising hopes the Fed can start slow down the rate of increase in FFR.
Corporate Bonds
Pefindo Gets Bond Mandate of IDR 39.32 Trillion. PT Pemeringkat Efek Indonesia (Pefindo) received a mandate to process the issuance of debt securities of IDR 39.32 trillion until the third quarter of 2022. Meanwhile, the mandate of the corporate bonds came from 29 companies with various sectors. (Liputan6.com)
Domestic Issue
Ministry of Finance Obtains Financing of IDR 12.15 Trillion. The Directorate General of Budget Financing and Risk Management, Ministry of Finance, received financing of IDR 12.15 trillion from the auction of Government Bonds on Tuesday (25/10). In the auction, the government received bids of up to IDR 17.09 trillion. In detail, investors’ interest in that auction increased compared to the previous auction of IDR 15 trillion amid solid domestic macroeconomic conditions and the state budget performance, which still recorded a surplus at the end of September. (Berita Satu)
Recommendation
Selective Risk-On investors in SUN. The results of the SUN auction recorded investor entry bids of up to IDR 17.1 Trillion; surpassed the SUN auction two weeks earlier by IDR 15 Trillion. Risk-On selective investors in the bond market, as yield on GIDR10Y touched an attractive level of 7.65% or 355Bps higher than UST10Y which was at 4.10%.
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