Fixed Income Update 28 Nov 2024

KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 28 November 2024

Positive Hopes from Trump, Named Bessent

The appointment of Scott Bessent as the Secretary of the Treasury under Trump 2.0 is anticipated to serve as a stabilizing force for the U.S. economy and fiscal policy. While he advocates for tax cuts, expectations of a return to fiscal surplus in the United States are hoped to sustain economic stability domestically and maintain confidence in global financial markets. This development has subsequently driven a decline in UST yields, particularly during the first three trading days of this week.

The strengthening of the DXY continues to pose a challenge to Rupiah stability. At the same time, this dynamic has contributed to a persistent increase in SUN yields over the past week.  Looking ahead, the anticipated decline in UST yields creates room for SUN yields to move toward lower levels. 
 
 

Regards,
KBVS Research Team