Daily Debt Watch Monday, December 14, 2015 ~ Danareksa

8:48 AM | December 14, 2015 Obligasi No Comments
  • Danareksa government bonds yield index was up 9.69bps from 8.660% to 8.757%
  • There’s been plenty of prognosticating about what will happen to the bond market’s unprecedented bull run once U.S. interest rates start rising from rock-bottom levels. A quick scan of history provides plenty of support for the optimists. Every time the Federal Reserve has raised rates over the past four decades, betting that longer-term Treasuries would outperform short-term debt has proved to be a big winner as higher rates stemmed inflation and kept economic growth from overheating. What’s more, returns consistently exceeded corporate bonds in the first year of tightening, with Treasuries underperforming just once. Yields on 10-year notes, which guide interest rates on trillions of dollars of debt, ended at 2.13% on Friday, lower than they were a year ago. In 2010, yields reached 4%. (Bloomberg)
  • Government bonds volume was IDR9.10 trillion, and it was dominated by short term (< 5 years). It was lower than the previous day transaction of IDR11.09 trillion and it was lower than its YTD average of IDR12.54 trillion.
  • Corporate bonds volume was IDR388.34 billion, mostly short term (< 5 years). It was lower than the previous day transaction of IDR905.75 billion and it was lower than its YTD average of IDR629.11 billion.
  • IDR weakened 1.30% against USD from 13,956 to 14,137 whilst JCI fell -1.63% from 4,466 to 4,394.
  • FR0056 yield was up by 12.50bps from 8.541% to 8.666% while RI240115 yield increased by 8.7bps from 4.856% to 4.943%.
  • Brent was down from 39.04 to 37.33 USD per barrel meanwhile WTI Cushing Crude Oil Spot price was down from 36.76 to 35.62 USD per barrel.

Danareksa_DW20151214.pdf