Inflation in Australia rose to a new 32-year high of 7.8% in the 4Q22, marking the fastest pace since March 1990. Additionally, Singapore’s inflation eased to 6.5% in December 2022 after being stable at 6.7% for the past two months and almost in line with the expectations of 6.55%. European economic data showed an uptick in business activity in the region’s services and manufacturing sectors, as German Business Climate Index rose to 90.2 points from 88.6 points on “considerable less pessimistic expectations.” However, this was below its 2021 and early 2022 optimism. This week, the global market will focus on the 4Q22 GDP data release this Thursday, which is expected to show a cooling in growth.

Corporate News
Indah Kiat Pulp & Paper (INKP) Finalizes the Offering of IDR 1.74 T Bond and Sukuk. PT Indah Kiat Pulp & Paper (INKP) will issue Sustainable Bonds III Phase IV amounting to IDR 1.07 trillion, and Sustainable Mudharabah Sukuk II Phase IV Year 2023 amounting to IDR 675.51 billion. Thus, the total funds raised through this corporate action reached IDR1.74 trillion. This bond consists of two series, series A bonds amounting to IDR909.32 billion and series B bonds worth IDR163.6 billion. Meanwhile, INKPS’s Mudharabah Sukuk consists of three series of Sukuk, including Series A sukuk worth IDR106.885 billion, Series B sukuk worth IDR501.5 billion, and Series C sukuk worth IDR67 billion. (Kontan)

Domestic Issue
The Directorate General of Budget Financing and Risk Management (DJPPR) of the Ministry of Finance explained that investors were enthusiastic in welcoming the offering period of the SBN Retail series SBR012, where sales have reached 57.6% of the initial target. In other words, SBR012 has sold IDR 5.76 trillion with 23,847 investors from the Government’s initial target of IDR 10 trillion. The high investor interest is due to the SBR012 yield rate, which is higher than the previous SBR series and higher than the average deposit interest of state-owned banks; the coupon type is floating with floor. (KONTAN / Bonds).

ID10YT managed to bounce off the support from the previous low of 6.62 and is now successfully perched back above the MA10 / 6.70. The following focus is to continue trying the northward path to a yield of 6.82-6.83, or even MA50 / 6.89. ADVISE: Buy or Average Up. On the other hand, US10YT is trying to regain ground after coming back below MA10, making 3.47 as the closest resistance now; before breaking free towards MA20 & MA50 in the yield range: 3.53-3.59. Thus, the US10YT condition still looks giddy with the Support area around 3.40. ADVISE: Hold, Buy on Break.

Download full report HERE.