09 Oct 2023 | News & Feature

Living on a prayer

  • Spiking yields on UST securities limit the Fed’s urgency to increase the FFR by another 25 bps. However, the situation might change given the recently observed bear-steepening situation.
  • The worsening supply outlook in the global oil market may continue to fuel inflationary concerns in the US and global economy, highlighting the need for a stronger USD.
  • The prolonged rally in the USD value could weaken the Rupiah’s now-strong fundamental, which may tempt Bank Indonesia to restart its rate-tightening campaign.