Today’s Outlook:
The bearish sentiment on Friday trading (19/05/23) due to the deadlock in talks over the US debt ceiling solution, has become more optimistic after President Joe Biden and Republican Kevin McCarthy promised to meet as soon as Biden returns from the G7 Summit. Japan’s Core Machinery Orders for March unexpectedly fell below expectations, -3.5% YoY, a quite poor result compared to the forecast of 1.4% and the previous month’s positive high of 9.8%. Later in the week, China’s central bank will announce their benchmark interest rate which is likely to remain unchanged at 3.65%. Then, later today, data from the Eurozone will be released:  Construction Output (Mar.) and Consumer Confidence (May); and market participants will monitor comments from top Federal Reserve officials on the future direction of monetary policy.

Corporate News
Protelindo to Issue IDR 1.09 Trillion Bonds PT Profesional Telekomunikasi Indonesia or Protelindo will issue bonds with a value of IDR 1.09 trillion. The bond issuance of this subsidiary of PT Sarana Menara Nusantara Tbk (TOWR) is part of Protelindo’s Sustainable Bonds III with a principal amount of IDR 5 trillion. Protelindo has issued bonds totaling IDR 3.91 trillion in the first and second stages. With the issuance of this third phase, the total planned issuance of Protelindo Sustainable Bonds III is IDR 5 trillion. In this third phase, Protelindo offers bonds in two series. Series I bonds have a principal value of IDR 797.5 billion, this 370 days bond with a tenor of 370 days offers a yield of 6.15% per year. Series B bonds have a principal value of IDR 296 billion, this three-year tenor bonds offer a fixed interest rate of 6.5% per year. (Kontan)

Domestic Issue
The Ministry of Finance recorded a total Sri Mulyani Issues IDR 11.3 T Notes, the First Blue Bond in the World The Indonesian government through the Ministry of Finance led by Sri Mulyani announced the issuance of Japanese yen-denominated Government Bonds (SUN) or Samurai Bonds. The value of the SUN issued is 104.8 billion yen or equivalent to IDR 11.34 trillion on Friday (5/19). Director General of Financing and Risk Management of the Ministry of Finance Suminto revealed that the issuance of Samurai Bonds was intended to finance the deficit of the 2023 State Budget (APBN). Suminto said the Blue Bonds issuance shows the Government of Indonesia’s commitment to sustainable financing, especially in the context of achieving the Sustainable Development Goals (SDGs). Moreover, this issuance also shows significant progress for blue financing. Indonesia is currently the first country in the world to issue Blue Bonds. (Katadata)

US10YT has the opportunity to continue towards the TARGET yield around the 3.861% / 3.965- 4.0% level. If there is a pullback, it is hoped that it will be just a Support Test around the yield of 3.644-3.613%. ADVISE: Buy, or Average Up accordingly. ID10YT appears to be trying to rebound from the lower channel support area (downtrend). Will encounter the nearest Resistance: MA10 / yield 6.431%; which if successfully broken will open the way to the next Resistance / TARGET: 6.497% / 6.547%. ADVISE: Average Up accordingly.

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