*Daily Commentary (24-Oct): *

Foreign fund inflows to INDOGB continued after Tuesday’s auction, sending bond yields lower. According to PLTE, foreign has kept reporting net inflow, this time by Rp2.4tn on Wednesday (vs. +Rp6.7tn on Tuesday). The inflows were mostly coming from non-benchmark series, totaling Rp2.5tn; we suspect it came from the candidate new benchmark series for next year, i.e. 5yr FR77 and 10yr FR78.

According to Bloomberg, all the benchmark bond series’ prices were up, as the 5yr FR63 was traded at 89.8 (+0.2%), yielding 8.36% (-3.9 bps); the 10yr FR634 flat at 84.5 (+0.3%), yielding 8.54% (-6.3 bps); the 15yr FR65 at 82.4 (+0.4%), yielding 8.79% (-5.1 bps); and the 20yr FR75 at 86.3 (+0.3%), yielding 9.0% (-1.8 bps).

Meanwhile, JCI closed lower (again) by 1.5% to 5,709.4 (-4.5% mtd or -10.2% ytd) on Wednesday. Stock trading value was reported at Rp7tn with foreign investors reported doing net outflows of Rp686.8bn (outflow of Rp5.5tn mtd or outflow of Rp56.7tn ytd). Rupiah depreciated slightly by 0.02% to IDR 15,192/USD (depreciated 1.9% mtd or 12% ytd).

On the global market, the US stock market continued falling, thus erasing ytd gains for the Dow and S&P500 indices. The Dow and S&P indices closed down by 2.4% and 3.1%, respectively. For the year, the Dow is now at -0.6% and the S&P at -0.7%.

UST yields pulled back, with the 10-yr yield tumbling 4 bps to 3.12%. December WTI crude oil rose +0.6% to settle at USD 66.82/bbl. Meanwhile, the DXY index rebounded to the highest level this year, as Euro tumbled on lower than expected PMI release data. (Source: Mandiri Sekuritas)


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