Indonesia 10 Year Government Bond Yield increased to a 21-month high of 7.084%, as US treasury yield rose to above 3.1% Friday, a level not seen since November 2018, after the Fed announced a 50 bps- interest rate hike. Also, the recent jobs report showed the US economy added 428K jobs in April, the same as in March and more than market forecasts, reinforcing a more hawkish Fed stance. Meantime, a Reuters poll found that the Southeast Asia’s largest economy have contracted 0.89% qoq in Q1, due to mobility curbs and typically low economic activities in the beginning of the year compared to year-end.In Q4 2021, the economy grew 1.06%.
The data is due to be released later in the day, along with inflation reading for April. Markets had expected consumer prices in the country to rise 3.34% yoy in the month, likely the most since September 2019, as consumption accelerated during the fasting month of Ramadan and ahead of Eid-ul Fitr celebration.
