Pressure Eases as the Fed Delayed Rate Hike
The bond market experienced a sharp volatility in the first four days of last week trading with the credit and govvies yield rallied significantly. Credit yield in AAA space jumped by an average of 30 bps in all tenors in four days trading as investors acted cautiously prior to FOMC meeting. However, investors bought back the high yield assets following the Fed decision on Friday that kept the rate unchanged and thus paring the four days losses. Credit yield in AA and A space just rose thinly, widening an average of 6 bps WoW while yield on AAA space climbed 16 bps WoW. Secondary transaction amounted to IDR3,188 billion, lower by 13% WoW with the transaction skewed to AAA and A rated bonds. Among top traded bonds were: Agung Podomoro Land, Tbk (APLN:IJ) 12.50% 2019, Duta Anggada Realty, Tbk (DART:IJ) 12.25% 2018 and Bank OCBC NISP, Tbk (NISP:IJ) 9.4% 2017.
