Global investors digested strong economic data and signals of a measured interest rate approach from the Federal Reserve. US Initial Jobless Claims numbers were released at 190K, lower than the expected 195K (also lower than the previous week at 192K). At the same time, 4Q22 Unit Labor Costs rose significantly to 3.2% (2x higher than the 1.6% forecast and 2% from the previous quarter.) These two economic data explain how solid the labour market is, where the jobless rate continues to fall, and workers’ wages continue to rise. On the other hand, Atlanta Fed President Raphael Bostic said that the 25 bps rate hike is still applicable to limit the risk of recessionary pressures on the economy. Meanwhile, the two-year US Treasury yield was consolidated mildly by 0.4bps to 4.885% after touching a 15-year high of 4.944%. From Europe, Eurozone annual inflation (Feb.) remained unchanged at 8.5% YoY, failing to meet expectations of an increase to 8.2%, although slightly easing from January’s 8.6%. On a monthly basis, Eurozone CPI actually strengthened by 0.8% compared to the previous month -0.2%. Meanwhile, the increase in Core Inflation to 5.6% (vs forecast & previous: 5.3%) further strengthened the view that the Eurozone Inflation rate is still difficult to tame.

Bank Indonesia has begun to implement the deposition of Foreign Exchange Export Proceeds for a certain period in domestic banks, as well as providing attractive interest rate incentives to exporters according to the length of the deposit period which varies between one, two, or three months.

Corporate News
Bank Victoria Aims for IDR 500 Billion in Fresh Funds Through Bond Issuance PT Bank Victoria International Tbk (BVIC) is currently offering Sustainable Bonds III Phase I Year 2023, with a total principal amount of IDR 500 billion. The bond public offering period lasts from Wednesday, March 1, 2023 to March 6, 2023. Electronic distribution of bonds will be carried out on March 9, 2023 and listing on the Indonesia Stock Exchange (IDX) on March 10, 2023. The bonds are offered in 2 series, with a principal amount of IDR 300 billion for Series A and IDR 200 billion for Series B. Series A bonds are offered with an interest rate of 9.25% per year and a 3-year tenor, while Series B bonds have an interest rate of 10.25% per year and a 5-year tenor. BVIC has obtained an “idA-” rating from Pemeringkat Efek Indonesia (Pefindo)  for the bonds issued. In the prospectus that has been submitted, BVIC will use the proceeds from the bond issuance for working capital needs which will be disbursed in the form of credit. (IDNFinancial)

Domestic Issue
Sri Mulyani and Her Fellow Are Confident That SR018 Sales Will Reach IDR 15 Trillion Through the Directorate General of Financing and Risk Management (DJPPR) of the Ministry of Finance, the government set a sales target of two series of retail government sharia securities (SBSN) or retail sukuk SR018 T3 and SR018 T5, with a total amount of IDR 15 trillion. Director of Sharia Financing at the Ministry of Finance’s DJPPR, Dwi Irianti Hadiningdyah, said she was optimistic that SR018 sales would meet the target. According to Irianti, the government is quite optimistic that public interest in SR018 is still high because SR018 is tradable, which is an important characteristic for retail investors who are concerned about liquidity issues. In addition, SR018 has obtained a sharia opinion from DSNMUI. Thus, investors who are concerned about sharia compliance need not worry. (Bisnis)

US10YT is also consistently undergoing its uptrend above MA10 Support; towards a TARGET of: 4.243 / 4.338 / 4.48 -4.49. ADVISE : let your profit run, set your Trailing Stop as RSI has entered Oversold area. ID10YT continues its steady rise towards its TARGET yield of 6,987-7.0. ADVISE: let your profit run, Set your Trailing Stop.

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