HIGHLIGHTS
- Indonesia 10-Year Government Bond Yield: As of November 19, 2024, the yield on Indonesia's 10-year government bonds decreased slightly to 6.883%, compared to 6.913% the previous day. Meanwhile, the UST 10-year yield fell to 4.39%, from 4.42% the previous day.
- Government Bond Market Activity: The total volume of government bond transactions amounted to IDR 31.25 trillion, with the majority concentrated in medium-term bonds (5-15 years). This was lower than the previous day’s volume of IDR 43.70 trillion and also below the year-to-date average of IDR 45.53 trillion. Notably, outright transactions rose significantly to IDR 13.77 trillion, up from IDR 1.09 trillion the day before.
- Corporate Bond Market: The total volume of corporate bond transactions was IDR 1.466 trillion, predominantly in short-term bonds (under 5 years). This marked an increase from the previous day’s transaction volume of IDR 1.079 trillion, although it was still lower than the year-to-date average of IDR 1.891 trillion. Outright transactions in the corporate bond segment surged to IDR 1.453 trillion, up from IDR 237 billion on the prior day.
- Currency and Market Indices: The Indonesian Rupiah (IDR) strengthened by 0.13% against the US Dollar, appreciating to IDR 15,830 from IDR 15,850. The Jakarta Composite Index (JCI) also rose by 0.86%, climbing from 7,134 to 7,196. In commodities, Brent crude oil prices increased from USD 73.44 to USD 74.46 per barrel, while the WTI Cushing crude oil price rose from USD 67.02 to USD 69.16 per barrel.
DOMESTIC UPDATES
- The results of the State Sharia Securities (Sukuk) auction held on November 19 revealed total incoming bids amounting to IDR 13.85 trillion, which is higher than the IDR 16.27 trillion received in the previous auction on November 5, 2024. The PBS032 series attracted the highest bid, with a yield range of 6.65% - 7.00%, drawing IDR 3.63 trillion in bids. This was followed by the PBS038 series and SPNS04082025, which garnered IDR 3.33 trillion and IDR 3.24 trillion in bids, respectively. The PBS038 series had a yield of 7.00%, while the SPNS04082025 series offered a yield range of 6.20% - 6.98%. The nominal value awarded in this auction amounted to IDR 9 trillion, in line with the government’s target, but lower than the IDR 10.20 trillion awarded in the previous auction. The bid-to-cover ratio for this auction stood at 1.54x. (DJPPR)
- Bank Indonesia (BI) will announce the BI Rate today around 2pm. We expect BI to cut the BI Rate by 25bps to 5.75% (cons: 6.00%)due to the weakening economic backdrop. Real rates is near 20-year high and household consumption remain sluggish. Recently, gov’t is planning to cut back spending towards the end of the year, which would constrain liquidity further if there’s no policy change by BI. (BRIDS)
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