HIGHLIGHTS
- As of October 11, 2024, the 10-year US Treasury yield increased by 10 basis points (bps) to 4.08% on a week-on-week basis, while the 2-year US Treasury yield rose by 2 bps to 3.95%. Correspondingly, the yield on the 10-year Indonesian Government Bond (INDOGB) also saw an uptick, rising 4 bps to 6.68% from 6.64% on October 4, 2024.
- The US Dollar Index strengthened by 0.29% week-on-week, whereas the Indonesian Rupiah depreciated by 0.61%, closing at IDR 15,580 per US Dollar on October 11, 2024. Meanwhile, Indonesia's 5-year Credit Default Swap (CDS) saw a minor increase of 1 bp, rising to 69 bps during the same period.
- The volume of government bonds traded reached IDR 36.05 trillion, predominantly comprised of short-term instruments (maturing in less than 5 years). This marks a decline from the previous day's transaction volume of IDR 41.76 trillion and is below the year-to-date average of IDR 45.87 trillion. The outright transaction volume also decreased to IDR 13.57 trillion, down from IDR 14.02 trillion the day prior.
- In the corporate bond market, total transaction volume was recorded at IDR 1,218 billion, again primarily driven by short-term bonds (maturing in less than 5 years). This represents a decrease compared to the previous day's volume of IDR 2,197 billion and falls short of this year's average of IDR 1,920 billion. The outright transaction volume remained at IDR 1,218 billion, down from IDR 2,172 billion from the previous day.
- The Jakarta Composite Index (JCI) rose by 0.54%, increasing from 7,480 to 7,521. Additionally, Brent crude oil prices climbed from USD 77.70 to USD 79.23 per barrel, while the WTI Cushing Crude Oil Spot price increased from USD 73.24 to USD 75.85 per barrel.
GLOBAL UPDATE
- China's MoF announce a string of stimulus such as issuing bond issuance to help local gov't finance the off-balance sheet debt and replenish core tier-1 capita in major state banks, and also allowing local gov't to use special bond receipt to absorb unsold existing home. The MoF also emphasized that the centra gov't has large room to increase fiscal deficit. China's major banks have announce the rate cut for existing mortgage as of Oct 25, with no less than 30bps lower than the current Loan Prime Rate. (Bloomberg)
- China's CPI rose 0.4% y-y, softer than the consensus of 0.6%, with core inflation dropped to 0.1% y-y, the lowest since Feb-21. The PPI decline annually for 24 consecutive months. (Bloomberg)
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