SUN Benchmark strengthened over the weekend, amid sentiment from the European continent’s energy crisis that the price of coal on the Newcastle ICE market touched a new record level of USD461.07/Ton, or up nearly 6% after Gazprom stopped indefinitely supplying natural gas to the Eurozone. This movement in the SUN market is also in the midst of a Bloomberg survey which projects that BI will increase the BI 7DRRR in September by +25 bps to the level of 4.00% (vs. Aug. 3.75%). NHKSI Research sees that BI is starting to anticipate the impact of a significant increase of more than 30% of subsidized fuel prices on inflation in September 2022.

Corporate Bonds
WSKT: Acquires IDR252 Billion Contract of Work. PT Waskita Karya (Persero) Tbk (WSKT) announced the acquisition of the Cipto Mangunkusumo Hospital (RSCM) construction project. Meanwhile, the Company won the tender to continue the construction of the Central Medical Unit 3 (CMU3) Building at the Dr Cipto Mangunkusumo National Hospital with a contract value of IDR252 billion. (Emiten News)

Domestic Issue
BI Projects Second Week of September Inflation of 0.77%. Bank Indonesia (BI) estimates that the inflation rate until the second week of September 2022 will be 0.77% MoM. Meanwhile, the main commodities contributing to inflation were gasoline at 0.66% MoM, broiler eggs at 0.03% MoM, rice and transportation rates within the city at 0.02% MoM each, as well as inter-city transportation fares, filter kretek cigarettes, and household fuel (BBRT) each at 0.01% MoM. (Kontan)

US entered a period of deflation, the August average US gasoline price fell more than 7% MoM. Based on a Bloomberg survey, deflation is projected to occur at the consumer and producer levels, CPI and PPI Final Demand Aug. The US is projected to post -0.1% MoM deflation respectively compared to July, which are at CPI: +0.0% MoM and PPI Final Demand: -0.5% MoM, respectively. Apart from gasoline, there was also a decline in US gas prices in the same period. On the other hand, the CPI Core YoY or the Fed’s benchmark in setting the FFR, is approaching the 7% level in the coming months, making NHKSI Research project a further aggressive Hawkish, or Sept increase in FFR. +75Bps to 3.00%-3.25%.

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