Today’s Outlook:
The US financial market was finally able to rebound quite significantly between 1.7%- 2.3%, buoyed by the rally in technology stocks led by Apple as well as the release of Nonfarm Payrolls (Apr.) employment data last Friday which came in at 253k, much higher than the forecast of 180k and the previous period’s 165k; thereby eliminating concerns of a global recession threat. The US Unemployment Rate (Apr.) also unexpectedly fell to 3.4% from 3.5% previously. US weekly wage increases were detected to rise 4.4% YoY and 0.5%, both percentages were reported higher than expectations. The global economy also seems to be getting more robust, as seen in the UK Construction PMI (Apr.) data, which is increasingly steady in the expansion area of 51.1; not to forget the data from the domestic, the excellent performance of Indonesia’s economic growth in the first 3 months of this year was able to book Gross Domestic Product growth at 5.03% (proved to be healthier than forecast & previous period).

Corporate News
To Be Repaid, PTPP IDR 460 Billion Maturity Bonds Receive idA Rating Pemeringkat Efek Indonesia (PEFINDO) affirmed the idA rating for the Sustainable Bonds II Phase I Series B of PT Pembangunan Perumahan (Persero) Tbk (PTPP) worth IDR 460 billion which will mature on July 6, 2023. PTPP will fully repay the maturing bonds from the proceeds of the Sustainable Bonds III Phase III and Sustainable Mudharabah Sukuk I Phase III issued in April 2023 totalling IDR 630.4 billion. (EmitenNews)

Domestic Issue
The Driving Factors that SUN Prices are Predicted to Strengthen Next Week The price of Government Securities (SUN) is predicted to strengthen in the next week, with a decrease in the 10-year yield between 6.4-6.3%. According to the Head of Fixed Income at PT Anugerah Sekuritas Indonesia Ramdhan Ario Maruto, the sentiment that drives the strengthening of SUN prices in Indonesia is high banking liquidity. The relatively thin movement of SUN prices in the short term is influenced by global uncertainty, especially the potential default of US debt. He added the increase in the Fed Fund Rate (FFR) slowed down the rate of decline in SBN yields in Indonesia. However, significant banking liquidity is again considered a rescuer that strengthens the market. This is because the funds are believed to flow into the SBN market. (Berita Satu)

US10YT seeks to test MA10 Resistance at 3.447% yield before freeing its way towards the next Resistance/Target at MA20/3.48% yield, followed by MA50/3.550%. ADVISE: Average Up accordingly. ID10YT nampak candle Doji di area Support lower channel, ketika RSI telah masuki wilayah Oversold. Antisipasi technical rebound pada yield. ADVISE : Speculative Buy ; Average Up >6.444% . TARGET : 6.563% / 6.63%.

Download full report HERE.