HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 7.060% on December 17, 2024, vs 7.061% the day before. Meanwhile, the UST 10-year yield rose to 4.40%, from 4.39% the previous day.
- Government bonds volume was IDR54.88 trillion, and it was dominated by short term (< 5 years). It was advanced than the previous day transaction of IDR42.12 trillion. The volume higher than its YTD average of IDR45.29 trillion. While the outright transaction reached IDR20.59 trilion was up from the previous day's transaction which amount to IDR16.18 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR2,220 billion, dominated by short term (< 5 years). The transaction volume dropped compared to the previous day's volume of IDR4,645 billion. The volume higher compared to this year's average of IDR1,947 billion. Meanwhile, outright transaction recorded at IDR2,219 billion dropped from the previous day's transaction of IDR2,735 billion.
- The Rupiah exchange rate against the US Dollar weakened by 0.41% to IDR16,065 from IDR16,000 while the JCI fell -1.39% from 7,259 to 7,158. Then Brent fell from 75.01 to 74.61 USD per barrel, while WTI Cushing Crude Oil Spot price dropped from 71.29 to 70.71 USD per barrel.
GLOBAL UPDATES
- China is planning to raise the fiscal deficit to 4% in 2025, amounting to an additional CNY1.3tn of debt, while maintaining the GDP growth target of 5%. (Reuters)
DOMESTIC UPDATES
- The results of the State Sharia Securities auction held on December 17 revealed total incoming bids of IDR 10.79 trillion, a decrease from the previous auction on December 3, 2024, which recorded IDR 13.67 trillion in bids. The series with the highest incoming bids was PBS038, with a yield range of 7.10% - 7.34%, attracting IDR 3.88 trillion in bids. This was followed by SPNS01092025 and SPNS09062025, which drew bids of IDR 3.21 trillion and IDR 2.04 trillion, respectively. The SPNS01092025 series offered a yield range of 6.38% - 6.90%, while the SPNS09062025 series had a yield of 6.70%. As a result, the total nominal awarded in the auction amounted to IDR 7.10 trillion, below the government's target of IDR 8 trillion and lower than the previous auction’s IDR 8 trillion. The bid-to-cover ratio for this auction was 1.52x. (DJPPR)
- Ministry of MSME stated that around 1.09mn of MSMEs will get their non-performing loan written off in Jan-25 with a similar plan to be expected after Mar-25. (Bisnis)
- Ministry of Finance estimated that the VAT rate of 12% will add 0.3 percentage points to the inflation in 2025. (Bisnis)
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