Fixed Income
In April 2024, significant shifts were observed in both the US Treasury Yield and Indonesia’s economic landscape. Firstly, the 10 Year US Treasury Yield surged notably, climbing from 4.20% to 4.68%, propelled by persistent inflation pressures and increased monthly net issuances. This trajectory indicated expectations of prolonged higher interest rates, prompting investors to anticipate a […]
Escalating tension in the Middle East, particularly between Iran and Israel, has sparked conflicts, including missile attacks and airstrikes. This geopolitical instability poses risks to Indonesia’s fixed income market, exacerbated by the potential impact of oil prices rising to US$100 per barrel, capital outflow, and IDR depreciation. The dilemma faced by the Government and Bank […]
OPPM’s credit outlook remains stable, underpinned by its resilient profit margins and well-integrated operational structure, despite constraints posed by a moderate financial policy. The company boasts an impressive EBITDA margin of 46.8% in 2023, outperforming peers like Indah Kiat Pulp & Paper Tbk (29.4%) and Pabrik Kertas Tjiwi Kimia Tbk (12.5%), owing to its export-oriented […]
In March 2024, the 10 Year US Treasury Yield fluctuated between 4.07% and 4.32%, influenced by revised Non-Farm Payroll figures and unexpected spikes in core inflation and CPI, prompting a cautious approach from the Federal Reserve toward interest rates to balance economic indicators and avoid premature adjustments. Despite these fluctuations, the Fed maintained a dovish […]
In February 2024, global financial landscapes witnessed dynamic shifts across various indicators. The 10-Year US Treasury Yield experienced a notable surge, rising from 3.91% to 4.25%, propelled by a robust Non-Farm Payroll, a resilient job market, and stable core inflation, suggesting potential Federal Reserve rate cuts in the mid-2024 horizon. Simultaneously, Indonesia’s 10-Year government bond […]
In January 2024, the 10 Year US Treasury Yield remained steady, starting at 3.88% early in the month and finishing at 3.91% by the end of January, with a peak of 4.18%. The initial rise in yield, attributed to a stronger-than-expected US economy, led the market to reassess the likelihood of an imminent policy rate […]