Monday’s lack of economic data made investors focus on the Fed’s Higher for Longer FFR. Speculation that the Fed again raised the FFR by +25 Bps in February and March 2023, pushing the Upper Bound FFR to the level of 5% while increasing the US economy in 1Q23 to become expensive.
Corporate Bonds
WIKA: Entity Executes Affiliated Transaction. The entity of PT Wijaya Karya (Persero) Tbk (WIKA) completed an affiliate transaction of IDR257 billion by involving Wijaya Karya Industri & Construction (Wikon), Wika Industri Manufaktur (Wima), and Industri Baterai Indonesia (IBC). The transactions took place in two scenarios. First, Wikon sold 34,409 Wima shares to IBC for IDR192 billion. Then, in the second scenario, Wukon’s capital injection to Wima was under a debt-to-equity swap scheme of IDR65 billion, with a conversion value of IDR1 million per share. (Emiten News)
Domestic Issue
Government Issues Subsidized House Price Adjustment Rules. The Ministry of Public Works and Public Housing (PUPR) estimated that the subsidized house price adjustment rules will be issued at the beginning of 2023. Previously, the Government had issued a PP number 49 of 2022, and the PP is set as a guarantee in adjusting subsidized house prices. (Kontan)
Recommendation
NHKSI Research projects that the SUN market will continue to strengthen, amid investors who tend to take a wait and see attitude, waiting for the results of BI’s RDG on Thursday.
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