Today’s Outlook:
US MARKETS: The slowing inflation data earlier this week has fueled optimism that Federal Reserve rate hikes has peaked.

Treasury yields resumed their slide, underpinning the broader market move higher, as optimism that the Fed interest rates have peaked continue to support investor sentiment following data earlier this week showing easing inflation. Additionally, weekly jobless claims rose while U.S. retail sales fell for the first time in seven months in October, pointing to slowing demand at the start of the fourth quarter. On the housing front, October housing starts of 1.372 million were slightly ahead of expectations and higher than the prior month, while building permits of 1.487 million were also higher than expected.

Corporate News
Agung Podomoro (APLN) Prepares IDR 1 Trillion for Bond Buyback Property issuer PT Agung Podomoro Land Tbk (APLN) has prepared funds of up to IDR 1 trillion to buy back global bonds issued by its business entity, APL Reality Holdings Pte. Ltd (APL Realty). Based on information disclosure on the IDX website, APLN held a tender offer to buyback senior bonds with a yield of 5.95% maturing in 2024. The bonds are denominated in US dollars with an aggregate principal amount outstanding of USD 131.96 million. “The aggregate principal amount of bonds that can be purchased is up to IDR 1 trillion, excluding accrued interest,” wrote APLN management as quoted on Friday, (11/17/2023). Along with the tender offer, the company, APL Realty, and several other APLN business entities have signed a dealer manager agreement on November 15, 2023 for the bonds with Standard Chartered Bank Singapore. Meanwhile, the offer will end on November 21, 2023 at 16.00 London time, unless extended. (Bisnis)

Domestic Issue
Bond and Sukuk Issuances Throughout 2023 Reach IDR 111.55 Trillion The Indonesia Stock Exchange (IDX) recorded a total of 100 bond and sukuk issuances that have been recorded throughout 2023 from 56 issuers worth IDR 111.55 trillion. In this week, the November 13-17, 2023 period, there was one bond listing on the IDX. On Friday (11/17/2023), PT Federal International Finance (FIFA) listed the Federal International Finance VI Sustainable Bonds with a Fixed Interest Rate Phase II Year 2023 worth IDR 1.1 trillion. The rating result from PT Pemeringkat Efek Indonesia (Pefindo) for the bonds is idAAA (Triple A). “PT Bank Rakyat Indonesia (Persero) Tbk acts as Trustee for both emissions,” said IDX Corporate Secretary Kautsar Primadi Nurahmad, quoted from the IDX website, Friday (17/11/2023). With this listing, the total bond and sukuk emissions listed on the IDX amounted to 535 emissions from 127 issuers with outstanding IDR 456.48 trillion and USD 69.05 million. While Government Securities (SBN) listed on the IDX amounted to 191 series with a nominal value of IDR 5,536.74 trillion and USD 486.11 million. Asset-Backed Securities (ABS) as many as nine emissions worth IDR 2.84 trillion. (IDX Channel)

US10YT has the potential for a technical rebound towards the nearest Resistance: MA10 / 4.52%, following the emerging Doji. Should it occur, it still does not alter the downside program towards the target bottom: 4.309% yield. ADVISE: Reduce position.

ID10YT has broken through the Support from the previous low around 6.70% yield, which will further smoothen the way down towards 6.465% yield. ADVISE : Reduce position. Nearest Resistance: MA10 at 6.77%.

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