- Long-term interest rates in the US are declining again while short-term rates rise, as the recent QRA signals the US government’s decision to maintain short duration in the UST market for the upcoming quarters.
- The ongoing debt ceiling debate adds more clarity to the market, as the US government is in no rush to lift the debt ceiling, thanks to its ample TGA balance.
- The stabilising UST market has had a positive spillover effect on the SBN market, which does not appear to suffer from repricing amidst the barrage of negative news on the Indonesian economy.
