HIGHLIGHTS

  1. The yield on the US Treasury 10-year bond rose by 7 basis points (bps) week-on-week, reaching 3.73% on September 20, 2024. Conversely, the yield on the 2-year Treasury note declined by 2 bps to 3.55% during the same period. On the other hand, the yield on Indonesia's 10-year government bond (INDOGB) decreased by 15 bps to 6.44% on September 20, 2024, down from 6.59% on September 13, 2024.
  2. The US Dollar Index experienced a depreciation of 0.37% compared to the previous week, while the Indonesian Rupiah strengthened by 1.62%, closing at IDR 15,150 per US Dollar on September 20, 2024. Additionally, Indonesia's 5-year Credit Default Swap (CDS) increased by 2 bps week-on-week, reaching 68 bps on the same date.
  3. The volume of government bonds traded reached IDR 48.11 trillion, primarily in the medium-term segment (5-15 years). This reflects a decline from the previous day's transaction volume of IDR 53.43 trillion but remains above the year-to-date average of IDR 45.78 trillion. The outright transaction volume stood at IDR 31.02 trillion, down from IDR 33.88 trillion on the previous day.
  4. In the corporate bond market, total trading volume was recorded at IDR 884 billion, with a predominance of short-term bonds (less than 5 years). This represents an increase from the previous day's volume of IDR 494 billion, although it remains below this year's average of IDR 1,895 billion. The outright transaction volume was reported at IDR 874 billion, up from IDR 494 billion on the prior day.
  5. The Jakarta Composite Index (JCI) declined by 2.05%, falling to 7,743 from 7,905. Meanwhile, Brent crude oil prices increased from USD 75.08 to USD 76.52 per barrel, and the WTI Cushing Crude Oil Spot price rose from USD 70.91 to USD 71.95 per barrel.

GLOBAL UPDATES

  1. Bank of Japan maintained its interest rate at 0.25%. BoJ Governor Kazuo Ueda pushed the likelihood of an October rate hike further to the sidelines Friday with a cautious message that pointed to ongoing concern over the market meltdown that followed July’s rate increase. (Bloomberg)

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