Weekend Depressed Benchmark Series. US PCE Core Deflator in May was up +0.3% MoM (+4.7% YoY); still high compared to last month’s +0.3% MoM (+4.9% YoY), supporting the Fed’s aggressive Hawkish stance in July, which is projected to increase FFR by 75 bps to 2.25%-2.50%. Other data show that consumers restrain consumption, with Personal Spending only growing 0.2% in May (Vs. Apr. +0.6%), while Personal Income was flat +0.5% in the same period. The US economic data was followed by Indonesia’s Headline CPI YoY that reached 4.35% or above the ceiling of BI’s annual inflation target of 2%-4.2%. FR0090 and FR0091 recorded yield increases of up to 3.3 bps and 5 bps, or to 6.13% and 7.24%, respectively.
Summarecon Agung Issued IDR 448 Billion Bonds. PT Summarecon Agung Tbk (SMRA) will issue Shelf-Registered Bonds IV with a target fund of IDR 3 trillion. In the first stage, this property issuer will issue IDR 448.45 billion bonds. The bonds with a 5-year tenor offer a fixed interest rate of 8% per annum. Based on the announcement of the Indonesian Central Securities Depository (KSEI), Summarecon’s bonds will mature on July 8, 2027. (Kontan)
SBN Issuance Down 60.7% In 1H22. The Minister of Finance said that net issuance of Government Securities (SBN) decreased by 60.7% in 1H22, or only issued IDR 182.4 trillion. This figure has decreased compared to the realization in the same period last year of IDR 464 trillion. The realization of debt financing in 1H22 which experienced a decline was also in line with the backloading strategy to maintain debt cost efficiency. (Kontan)
Rupiah Depreciation and Foreign Outflow in June. In addition to the payment of USDdenominated debt and an increase in imports of raw materials, the absence of the June Global Bond issuance based on DJPPR data, has the opportunity to put capex under pressure again, after booking at USD135.6 billion in May. Meanwhile, capex data was released Thursday morning, after the FOMC Meeting Minutes Results in the morning. The steady movement of capex provides room for BI as rupiah approaches IDR15,000/USD.
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