Consumer confidence and US home prices fell again, as inflation and high-interest rates have persisted for a long time. The data shows Conf. Board Cons. Confidence US in Nov. dropped to 100.2 (Vs. Oct. 102.2), with S&P CoreLogic Case Shiller AS in Sept. weakened – 1.24% MoM (Vs. Aug. -1.30% MoM). On the other hand, crude oil prices relatively rebounded along with the expectation of China’s Zero-Covid Policy eased, and speculation of OPEC+ production cuts that sent Wall Street to close mixed. Although Brent’s crude oil price remains at USD83.03/Barrel, the WTI rose relatively close to the psychological level of USD80/Barrel.

Corporate Bonds
SMMA Issues Bonds With 10.50% Coupon. PT Sinar Mas Multiartha Tbk (SMMA) will issue a series of bonds worth IDR 784.72 billion. The Sinar Mas Multiartha Phase IV Year 2022 Sustainable Bonds II are part of the Sinar Mas Multiartha Sustainable Bonds II with a total value of IDR 5 trillion. In the fourth stage, SMMA will issue bonds with a tenor of 10 years. The bonds with a value of IDR 784.72 billion offer a fixed interest rate of 10.50%. The fourth phase of the bonds will mature on December 14, 2032. (Kontan)

Domestic Issue
The Government Starts to Run Budget Efficiency. The government has set 2023 as the year of fiscal consolidation so that the deficit in 2023 can return below 3% of the Gross Domestic Product (GDP). The state budget deficit for the fiscal year 2023 is at 2.84% of GDP or IDR598.2 trillion. By this deficit, IDR696.3 trillion debt financing still needs to be managed efficiently and effectively. (Investor Daily)

At the BI Annual Meeting scheduled for today, investors look forward to BI’s views on the economy and monetary policy for the rest of the year and next year. Investors are also likely to wait and see as they look forward to the manufacturing and inflation data released tomorrow. The latest data shows that Indonesian manufacturing has experienced a slowdown in expansion. The November period is projected to turn the inflation back as several food commodities rise, from chicken eggs to rice.

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