• Recent developments seem to ease risks from the Trifecta of Challenges, offering potential improvements in DXY, yields, and liquidity.
• BI's rate cut led to declines in INDOGB yields and SRBI awarded yields, reflecting the policy shift, providing a base for growth momentum.
• Recent global events indicate a de-escalation of tensions, easing reflation risks and trade concerns, though challenges persist.

HIGHLIGHTS

• The Inflection Points
• The Litany of Positive Progression
• De-escalation of Global Tensions
• Capital Market - Lower overall yields but IDR level remains elevated
• Fixed Income – Yield Movement Spark Outflow
• Government Bond (SUN) Auction Schedule: Tuesday, January 21, 2025

This Week Key Focus

• China maintain key policy rates in January 2025 (Monday)
• Japan Interest Rate – January 2025 (Friday)
• Indonesia Direct Investment – 4Q24 (Friday)

Last week Key Events

GLOBAL UPDATES

• US Core CPI increased 0.2% m-m after rising 0.3% four straight months
• China’s GDP rose 5.4% y-y in the 4Q24

DOMESTIC UPDATES

• Bank Indonesia (BI) unexpectedly lowered the BI Rate by 25bps to 5.75%
• Indonesia's recorded a trade balance surplus of USD2.2bn in Dec-24

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