Trading volume was only reported at Rp7.8tn. Interestingly, based on PLTE data, foreign keeps net buying INDOGB, totaling Rp1.7tn- mostly from non-benchmark series. Specific for benchmark series, foreign is still posting net buy of Rp264bn. According to the latest bond fund flow data from DMO website based on settlement date of 19 Oct 2018 (reflecting trading on 17-Oct), foreign ownership in government bond was reported at Rp850tn (outflow of Rp0.8tn mtd and inflow of Rp13.9tn ytd) or 37% of total outstanding.
The 5yr FR63 was trading flat at 89.6, yielding 8.43%; the 10yr FR64 at 84.1 (+0.1%), yielding 8.60% (-1.9 bps); the 15yr FR65 at 82.4, yielding 8.80%; and the 20yr FR75 at 86.4, yielding 8.99%.
Meanwhile, JCI today was up slightly by 0.05% to 5,840.4 (-2.3% mtd or -8.1% ytd), with foreign investors reported at net outflow of IDR 64.5bn (outflow of IDR 5.4tn mtd or IDR 56.6tn ytd). Rupiah is relatively stable at Rp15,189/USD (depreciated 1.9% mtd or- 11.9% ytd).
Bank Indonesia will announce the 7DRRR today, the market expects BI will pause rate hike this month after increasing 150 bps since May-18, following trade surplus in September, rupiah stabilization in the last two weeks, low inflation data, and only one hike on FFR expected in Dec 2018.
The Government will hold another rupiah government auction today with an issuance target of Rp10tn (max Rp20tn) or the same amount with the previous auction. As scheduled, the Government will offer more bond series during the auction, i.e. 3mo and 8mo SPN, 5-yr FR0077, 10-yr FR0078, 15-yr FR0065, 20-yr FR0075, and 30-yr FR0076.
On the global market, US stocks closed mostly lower due to rising geopolitical tensions and worries that companies have been nearing peak earnings. The S&P 500 index was down 0.43% and the Dow was also posting -0.5% while the Nasdaq was posting gain by 0.26% on Monday. The US Treasury prices were flat across the board, as the yields of the 2-yr and 10-yr notes remained unchanged at 2.90% and 3.20%, respectively. (Source: Mandiri Sekuritas)