SUN market is under pressure ahead of new New Issue offerings. Yield FR91 is again trading above the 7% level. Today, the Government is offering new series at auction Tuesday, namely FR95 (6-Year), FR96 (11-Year), and FR97 (21-Year). Meanwhile, Indonesia’s Trade Balance data for the July period was a surplus of +USD 4.2 billion (Vs. Jun. +USD5.1 billion). In addition to sloping prices for a number of global commodities, NHKSI Research sees that the economic slowdown in export destination countries has also reduced the July surplus.

Corporate Bonds
TLKM: Strengthens Data Center Line. PT Telkom Indonesia Tbk (TLKM) injected capital of Sigma Cipta Caraka (Telkom Sigma) worth IDR410.68 billion. The loan was made to strengthen Telkom Sigma’s capital structure. Meanwhile, Telkom Sigma is engaged in the business of consulting services for hardware, computer software, data storage centers (data center), and optimizing the utilization of Telkom Indonesia’s resources. (Emiten News)

Domestic Issue
July 2022 Trade Balance Books USD 4.23 Bn Surplus. Indonesia’s trade balance once again posted a surplus in July 2022. Statistics Indonesia (BPS) noted that gains in the goods trade balance in the month under review amounted to USD 4.23 billion. The surplus in July 2022 was driven by the export value which was higher than the import value. The export value in July 2022 was recorded at USD 25.27 billion, while imports value was recorded at USD 21.35 billion. (Kontan)

Investors are watching the shrinking of the Trade Balance surplus. NHKSI Research sees the relatively stagnant export volume, amid the normalization of prices for Indonesia’s main export commodities such as CPO and Nickel, making investors need to pay close attention to the Trade Balance going forward. On the other hand, the PBOC unexpectedly cut the 1Y Medium-Term Lending Facility Rate Aug. from 2.85% to 2.75%. Zero Covid policy caused China’s 2Q22 GDP to contract -2.60% QoQ (Vs. 1Q22 expansion +1.40% QoQ). China’s Dovish attitude raises optimism that the Fed can achieve a soft landing for the US economy. In this week’s FOMC Meeting Minutes, investors are waiting for some clues as to whether the Fed will raise the FFR by 50Bps or 75Bps at the FOMC Meeting in September.

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