*Daily Commentary (25-Oct): *
According to PLTE data on Thursday, foreign investors have kept reporting net inflow to INDOGB totaling Rp517bn or +Rp12tn in the last five days. However, trading volume has slowed significantly on Thursday to less than Rp7tn (vs. Rp14.4tn in the previous day), as a rising global risk has sent the US stock to drop significantly.
All benchmark bond series fell slightly after rallying in the last two days. The 5yr FR63 was traded at 89.7 (-0.1%), yielding 8.39% (+2.2 bps); the 10yr FR64 at 84.2 (-0.3%), yielding 8.58% (+4.7 bps); the 15yr FR65 at 82.3 (-0.1%), yielding 8.80% (+1 bps); and the 20yr FR75 at 86.1 (-0.1%), yielding 9.02% (+1.5 bps).
Meanwhile, JCI rose 0.8% to 5,755 (-3.7% mtd or -9.5% ytd) on Thursday. Stock trading value was reported at Rp7.4tn (vs. Rp8.3tn average per day ytd) with foreign investors at net inflow of Rp114.1bn (outflow of Rp6.1tn mtd or -Rp57.2tn ytd). Rupiah also appreciated slightly by 0.06% to Rp15,188/USD (depreciated 1.9% mtd or -12% ytd).
On the global market, US stock markets rebounded as the Dow Jones index increased 1.63% to 24,984.5 and S&P 500 was also up 1.86% to 2,705.6 ahead of durable goods data released. The US Treasury prices remained relatively quiet, as the 2yr yield ended unchanged at 2.86% and the 10-yr yield added 1 bps to 3.14%. Meanwhile, December WTI crude oil rose 0.8% to settle at USD 67.33/bbl, its second straight gain after touching a two-month low. (Source: Mandiri Sekuritas)