Indonesian Government yields have declined over the past week. On July 10, 2020, the 10-year yield was recorded at the level of 7.08%, decreasing by 14 bps compared to July 3, 2020. Meanwhile, Indonesia"s 5-year CDS on July 10, 2020 increased by 4 bps to 126 bps compared to the previous week’s close. At the same time, the USD IDR exchange rate slightly strengthened to Rp14,435 per USD compared to Rp14,523 per USD on July 3, 2020 The U.S. Federal Reserve’s holdings of bonds and other assets shrank for a fourth straight week, sliding below $7 trillion, and use of one key emergency liquidity measure dropped to zero in the latest sign that financial stresses that erupted early in the coronavirus pandemic have eased. The Fed’s total balance sheet size declined by about $88 billion to $6.97 trillion as of July 8 versus $7.06 trillion a week earlier, data released on Thursday by the central bank showed. The main driver was the balance of outstanding repurchase agreements - or repos - which fell to zero from $61.2 billion a week earlier. (Reuters) Source: Danareksa Sekuritas Debt Research