Capital inflow sentiment again pushed the yield of 10-year Government Securities (SUN) FR0087 down to a level of 6.45% at the close of the weekend. This is different, with the relatively flat yield of US Treasury (UST) with similar tenors at a high level, around 1.65% or close to 1.70%. This yield movement narrowed the yield spread for both SUN and UST to only 480 bps. This figure is narrow, when compared to before which was in the range of 500 bps or even up to 520 bps. The decline in government securities yield was in line with foreign investors’ capital inflow for the period April 5 to April 8. Non-residents recorded a net buy on the Government Securities (SBN) market of IDR 4.3 trillion. Meanwhile, UST yields remained high after disappointing US jobless claims data. US filing of new jobless benefits claims last week reached 744 thousand, or higher than market expectations of just under around 700 thousand.

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