After the US Labor Department reported the economy added 517,000 jobs in January (almost three times what was expected), making investors recalibrate expectations over how hawkish the Fed may need to be in its efforts to rein in inflation as markets will be closely watching an appearance by Fed Chair Jerome Powell on Tuesday. Meanwhile, the unemployment rate fell to a 53.5-year low of 3.4%. Moreover, Indonesia’s 4Q22 GDP scheduled to come out today (survey: 4.92%, vs previous 5.72%) will sum up the sentiment rolling in the market.

Corporate News
TBS Energi Utama (TOBA) Offers Up to IDR500 Billion Bonds. PT TBS Energi Utama Tbk (TOBA) is offering TBS Energi Utama Bonds I Year 2023, which has entered the initial offering period (book-building) from January 30 – February 13, 2023. The company plans to issue bonds with a maximum principal amount of IDR500 billion, consisting of two series. Series A Bonds offer coupon indications between 8.25%-9.25%. While Series B Bonds offer coupon indications between 9.25%-10.25%, which will be paid on a quarterly basis. (Kontan)

Domestic Issue
As interest rates continue to rise, the coupons of the bonds issued in January 2023 have also increased. On average, during January 2023, the coupon of the bonds issued was 9.51%. The rate was higher compared to January 2022, which was at 8.41%. In detail, the average coupon rate for debt securities issued during January 2023 with a 1-year tenor is at a level of 7.92%, a 2-year tenor with an average of 8.00%, then for a 3-year tenor has an average coupon of 9.98%, and 5 years is at a level of 11.33%. If compared between government bonds and corporate bonds with a 5-year tenor that have been issued in January, the yield of corporate bonds is relatively higher and attractive. (KONTAN)

ID10YT slides downward and continues to pass the support of the previous low level of 6.60, thus there is still an open threat to the following support, namely the lower channel 6.5. ADVISE: Hold, reduce position. In contrast to ID10YT, the US10YT yield broke the Neckline of its Bottoming pattern, opening up opportunities for further strengthening towards a yield of 3.68 or TARGET yield of 3.77; with provisions of being able to break MA50 Resistance at 3,575. ADVISE: Average Up accordingly..

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