- 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.
