Bond market rally continues, will it be sustained?
Review: Bond rally continues on foreign fund inflows. Government bonds continued rallying during the week following very good demand on the last government bond auction and expectation of easing inflation in May that is expected to trigger Bank Indonesia to cut interest rate further.
Outlook: Prefer short-term tenor in risk-return adjusted wise. Some indicators are suggesting that the current bond market conditions haven’t signaled any reversal in the trend yet. The yield might continue to decrease when rupiah strengthened against US dollar. We still prefer short-term tenor in risk-return adjusted wise. We also maintain our yield curve forecast, with the 2, 5 and 10 years yield projected to be 7.4%, 9.6% and 10.2% by YE09 respectively.
Tidak ada komentar:
Posting Komentar