Indonesia: Asia High Yield Bond Index, Bank Rakyat Indonesia Persero, MD Pictures Tbk PT and more

US equity markets dropped sharply with the S&P and Nasdaq ending 2.4% and 3.7% lower. Sectoral losses were led by Communication Services down 6.8%, while IT and Consumer Discretionary were down over 3%. US 10Y Treasury yields rose 7bp to 1.84%. European markets were also lower with the DAX, CAC and FTSE down 1.6% 1.5% and 0.7%. Brazil’s Bovespa closed 0.2% lower. In the Middle East, UAE’s ADX was down 0.1% and Saudi TASI closed 0.4% lower. Asian markets have opened mixed with HSI and STI up 2.4% and 0.2% while Nikkei was down 0.1%. Shanghai remains closed on account of the lunar new year holidays. US IG CDS spreads were 2.6bp wider and HY CDS spreads were 11.2bp wider. US IG CDX spreads are at its widest levels since November 2020 (see the chart below). EU Main CDS spreads were 4.6bp tighter and Crossover CDS spreads were 19.3bp wider. Asia ex-Japan CDS spreads were flat.