02 March 2020
Bank Indonesia will be registered in the market to stabilize the nation`s currency and bonds as investor concerns over the impact of coronavirus outbreak trigger a selloff, according to governor perry warjiyo. The Central Bank Bought Bonds Worth 100 Trillion Rupiah since the start of the year to stabilize the market, Warjiyo Tells Reporters in Jakarta on Friday. Bond Purchases since the end of January, when the market world, amounted to 78 trillion rupiah. Bi to Continue with its Triple Market Intervention of Stepping into the Spot Currency Market, Non-Delivering Forwards and Bond Purchase from Foreign Investors. (Bloomberg) The 10-Year U.S. Treasury Yield plungeed to a fresh record low on Friday as investors dummed riskier assets and searched for safer options amid the coronavirus outbreak. The Benchmark Rate Traded at 1,116%, Marking the First Time Ever It It Traded Below 1.2%. The 2-Year Rate Slid to 0.874%, its lowest level since nov. 2016. Yields are rising as purchases surge. The 10-Year Yield has tumbled more than 30 basis points this week alone as the massive sell-off in intensified stocks. (A base point is 0.01%.) (Cnbc) The Federal Reserve is Now Prepared To Reduce Interest This Month Even Though It Recognizes Monetary Policy Cannot Completely Shelter A U.S. Economy Increasingly Threated by the Coronavirus. Fed Chairman of Jerome Powell Opened the Door to a Rate Cut at the Fed’s March 17-18 Meeting by issuing a rare statement Friday pledging to "act as apprropriate" to support the economy. (Bloomberg) Source: Danareksa Securities Debt Research