Indonesian Government Bonds and The 5-Year CDS Increased

The yield on Indonesian Government Bonds showed an increase, where the 10-year yield reached 6.91% on 25 September 2020, an increase of 2 bps from 18 September 2020 which was 6.89%. Meanwhile, the 5-year yield rose 10 bps from a week earlier, to 5.66% on September 25. The 5-year CDS also increased by 26 bps on 25 September at IDR 14,873 per USD, weakening from IDR 14,735 per USD on 18 September 2020.

New orders for key U.S.-made capital goods increased more than expected in August and demand for the prior month was stronger than previously estimated, suggesting a rebound in business spending on equipment was underway after a prolonged slump. The upbeat report from the Commerce Department on Friday, however, did not change views that the economy’s recovery from the COVID-19 recession was showing as government money to help businesses and tens of millions of unemployed Americans run out. New coronavirus cases are rising in some parts of the country. That could crimp consumer spending with retail sales already slowing. (CNBC)

Source: Danareksa Sekuritas Debt Research

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