President Donald Trump’s Health Could Impact Asset Prices in the Coming Week

Investors are gauging how a potential deterioration in President Donald Trump’s health could impact asset prices in the coming week, as the U.S. leader remains hospitalized after being diagnosed with COVID-19. So far, markets have been comparatively sanguine: hopes of a breakthrough in talks among U.S. lawmakers on another stimulus package took the edge off a stock market selloff on Friday, with the S&P 500 losing less than 1% and so-called safe-haven assets seeing limited demand. (Reuters)

The yield on the 10-year Indonesian Government bonds reached 6.92% on October 2, 2020, up only 1 bps from a week earlier. Meanwhile, the 5-year bond yield rose 12 bps to 5.78% on the same date. In addition, 5-year Indonesian CDS decreased by 6 bps from a week earlier to 113 bps on 2 October 2020. The Rupiah against the USD depreciated 0.05% from 25 September to Rp 14,685 per USD on 2 October 2020.

Source: Danareksa Sekuritas Debt Research

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