HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.995% on July 25, 2024, vs 7.008% the day before.
- Government bonds volume was IDR37.51 trillion, and it was dominated by short term (< 5 years). It was was up than the previous day transaction of IDR36.47 trillion. The volume lower than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR16.75 trilion increased from the previous day's transaction which amount to IDR13.61 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,241 billion, dominated by short term (< 5 years). The transaction volume fell compared to the previous day's volume of IDR1,252 billion. The volume lower compared to this year's average of IDR1,983 billion. Meanwhile, outright transaction recorded at IDR1,166 billion dropped from the previous day's transaction of IDR1,252 billion.
- The Rupiah exchange rate against the US Dollar weakened by 0.22% to IDR16,250 from IDR16,215 while the JCI fell -0.31% from 7,263 to 7,240. Then Brent increased from 82.09 to 82.94 USD per barrel, while WTI Cushing Crude Oil Spot price increased from 78.20 to 78.88 USD per barrel.
GLOBAL UPDATES
- US GDP increased at a 2.8% annualized rate in the 2Q24, exceeding estimate and 1Q’s 1.4% in the previous quarter, the government’s initial estimate showed. Personal spending advanced 2.3%, also more than projected. A closely watched measure of underlying inflation rose 2.9%, easing from the first quarter but still above estimates. (Bloomberg)
- PBoC decreased the rate of the medium-term lending facility (MLF) by 20bps to 2.3%, the first reduction in almost a year. The cut followed the PBOC’s trim of the seven-day reverse repo by 10bps on Monday. (Bloomberg)
DOMESTIC UPDATES
- Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan is signaling government’s plan to improve fuel quality, which could pose higher production cost and raise fuel price. The price hike is intended to be an incremental of IDR10 or IDR20 overtime, to reduce shock effect. He also re-assured that there won’t be any fuel usage restriction for 2-wheeler. (Bisnis)
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