HIGHLIGHTS
- On October 21, 2024, the yield on 10-year Indonesian Government Bonds decreased to 6.635%, down from 6.660% the previous day. Meanwhile, the UST 10yr yield rose to 4.19%, from 4.08% the previous day.
- The total volume of government bonds traded was IDR 44.08 trillion, primarily in the medium-term range (5-15 years). This represents a decline from the previous day's volume of IDR 55.21 trillion and is below the year-to-date average of IDR 45.96 trillion. Outright transactions totaled IDR 13.74 trillion, a decrease from IDR 27.15 trillion the day before.
- In contrast, the total volume of corporate bonds reached IDR 1,929 billion, with a focus on short-term bonds (less than 5 years). This marks an increase compared to the previous day's volume of IDR 1,749 billion and is slightly above this year's average of IDR 1,923 billion. Outright transactions for corporate bonds also rose to IDR 1,929 billion, up from IDR 1,723 billion the previous day.
- The Rupiah depreciated by 0.19% against the US Dollar, trading at IDR 15,495, compared to IDR 15,465 previously. Meanwhile, the Jakarta Composite Index (JCI) saw a slight increase of 0.16%, rising from 7,760 to 7,773. Additionally, Brent crude oil prices fell from USD 74.18 to USD 72.59 per barrel, while the WTI Cushing Crude Oil Spot price dropped from USD 70.67 to USD 69.22 per barrel.
GLOBAL UPDATES
- Chinese bank cut the benchmark lending on 1Y Loan Prime Rate (LPR) to 3.10% from 3.35% and the 5Y LPR to 3.60% from 3.85%. The cut followed PBoC move of reducing 1Y Medium-Term Lending Facility Rate to 2% in late-September, which expected to spur loan disbursement and reduce interest expense by the customers. (Bloomberg)
DOMESTIC UPDATES
- The government will conduct an auction of State Sharia Securities (SBSN) or State Sukuk on Tuesday, October 22, 2024. The following series that will be offered at this auction are SPNS01042025 (Reopening), SPNS07072025 (Reopening), PBS032 (Reopening), PBS030 (Reopening), PBS029 (Reopening), PBS004 (Reopening) and PBS038 (Reopening). Thus, in this auction the Government has a target of IDR8 trillion. The results of the Government Sharia Securities auction held on October 8 indicated total incoming bids of IDR 14.85 trillion, a decrease from IDR 32.34 trillion in the previous auction on September 24, 2024. Consequently, the total amount awarded in this auction was IDR 7.75 trillion, falling short of the government's target of IDR 8 trillion and lower than the IDR 10 trillion from the previous auction. The bid-to-cover ratio for this auction stood at 1.92x. BRI Danareksa Sekuritas estimates that total incoming bids for the upcoming auction could range between IDR 15 trillion and IDR 25 trillion, with an expected bid-to-cover ratio between 1.88x and 3.13x. (Sources: DJPPR, BRIDS Estimated)
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