Projected May 2021 inflation at 0.28% MoM (0.86% YtD; 1.64% YoY), contributed by intercity transport fares. This figure was relatively well maintained the previous month at 0.13% MoM. However, it increased significantly compared to May 2020 of 0.07% MoM. NHKSI Research sees that the traffic flow for Eid this year is looser than last year. On the other hand, maintained inflation kept the real yield spread at around 500 bps. Earlier in the week, the yield on 10-year Government Bonds (SUN) FR0087 was at 6.40%, based on Bloomberg data. The movement of SUN at the beginning of the week is also ahead of the issuance of PBS030 (7.1-year) which has the opportunity to offer 30 bps higher returns than SUN with a similar tenor.

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