HIGHLIGHTS
- The yield on the 10-year US Treasury bond declined by 5 basis points (bps), settling at 4.58% on January 31, 2025, down from 4.63% on January 24, 2025. Similarly, the 2-year US Treasury yield also decreased, reaching 4.22% during the same period. In contrast, the 10-year Indonesian Government Bond (INDOGB) yield fell by 6 bps to 6.99% as of January 31, 2025.
- The US Dollar Index gained 0.78% week-over-week, while the Indonesian Rupiah weakened by 0.79% over the same period, closing at IDR 16,300 per US Dollar on January 31, 2025. Additionally, Indonesia’s 5-year Credit Default Swap (CDS) saw an increase of 3 bps week-on-week, rising to 77 bps as of January 31, 2025
- The volume of government bond transactions amounted to IDR 45.46 trillion, with the majority concentrated in the medium-term range (5-15 years). This was a decrease from the previous day’s transaction volume of IDR 57.57 trillion and was also lower than the year-to-date (YTD) average of IDR 48.60 trillion. Outright transactions reached IDR 26.96 trillion, an increase from the previous day's IDR 18.79 trillion.
- In contrast, the total volume of corporate bond transactions was recorded at IDR 495 billion, primarily dominated by short-term bonds (<5 years). This represented a decline from the previous day's volume of IDR 2,342 billion and was also lower than the average for the year, which stands at IDR 1,942 billion. Outright transactions in corporate bonds totaled IDR 480 billion, down from IDR 1,926 billion the previous day.
- The Jakarta Composite Index (JCI) rose by 0.50%, moving to 7,109 from 7,073. Meanwhile, Brent crude oil prices decreased slightly, from USD 77.80 to USD 77.66 per barrel, while WTI Cushing Crude Oil Spot prices rose slightly, from USD 72.62 to USD 72.73 per barrel.
GLOBAL UPDATES
- Trump imposed 25% tariff on Mexico and Canada, and another 10% on China, on top of the existing tariff. The tariff will take place in Tuesday in an effort to force Mexico, Canada, and China to curb the fentanyl flow to the US. To soften the blow, Canada's energy products only get 10% tariff. (Bloomberg)
- US PCE rose 2.6% y-y in Dec-24, the highest since Apr-24, while the Core PCE rose 2.8% y-y. The PCE inflation still support further rate cut in 2025 although recent tariff measure by Trump should pose as a risk to the PCE deceleration. (Bloomberg)
To see the full version of this daily update, please click here
