Bonds: Daily Watch 6 Maret 2015

Danareksa government bonds yield index advanced 8.94bps from 7.235% to 7.324%

As the U.S. jobless rate creeps ever closer to the Federal Reserve’s definition of full employment, some Fed officials are asking a question: How low can you go? Their answer: less than the 5.2 percent to 5.5 percent the Fed currently defines as the lowest that can be achieved without heating up inflation. Some Chicago Fed economists say this sweet spot, often called full employment or the natural rate of unemployment, may be as low as 5 percent. Futures based on the federal funds rate imply a rate of 0.51 percent in December 2015. Fed officials expect the benchmark funds rate to trade in a range between 1 percent and 1.25 percent by the end of 2015, according to the median estimate of their quarterly forecasts in December. (Bloomberg)

Government bonds volume was IDR13.00 trillion, and it was dominated by medium term (5-15 years). It was lower than the previous day transaction of IDR16.32 trillion but it was higher than its YTD average of IDR10.56 trillion.

Corporate bonds volume was IDR541.63 billion, mostly short term (< 5 years). It was lower than the previous day transaction of IDR918.98 billion and it was lower than its YTD average of IDR551.70 billion.

IDR strengthened 0.01% against USD from 12,991 to 12,990 whilst JCI increased 0.05% from 5,448 to 5,451.

FR0070 yield climbed up by 8.60bps from 7.166% to 7.252% while RI240115 yield was down by -1.4bps from 3.731% to 3.717%.

Brent climbed up from 60.11 to 60.12 USD per barrel meanwhile WTI Cushing Crude Oil Spot price was down  from 51.53 to 50.76 USD per barrel.