HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 7.160% on January 20, 2025, vs 7.139% the day before.
- Government bonds volume was IDR48.33 trillion, and it was dominated by short term (< 5 years). It was was up than the previous day transaction of IDR45.10 trillion. The volume higher than its YTD average of IDR47.31 trillion. While the outright transaction reached IDR9.17 trilion dropped from the previous day's transaction which amount to IDR20.09 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,335 billion, dominated by short term (< 5 years). The transaction volume fell compared to the previous day's volume of IDR1,740 billion. The volume lower compared to this year's average of IDR2,336 billion. Meanwhile, outright transaction recorded at IDR1,335 billion declined from the previous day's transaction of IDR1,739 billion.
- The Rupiah exchange rate against the US Dollar strengthened by 0.03% to IDR16,360 from IDR16,365 while the JCI increased 0.22% from 7,155 to 7,171. Then Brent advanced from 82.11 to 82.20 USD per barrel, while WTI Cushing Crude Oil Spot price fell from 78.68 to 77.88 USD per barrel.
GLOBAL UPDATES
- China maintained its 1Y and 5Y Loan Prime Rate at 3.10% and 3.60%, respectively. The move on the Loan Prime Rate followed last-month’s unchanged rate of the 1Y Medium-term Lending Facility. (Bloomberg)
DOMESTIC UPDATES
- The government is scheduled to conduct a government bond (SUN) auction on Tuesday, January 21, 2025. The series to be offered include SPN03250423 (New Issuance), SPN12260108 (Reopening), FR0104 (Reopening), FR0103 (Reopening), FR0106 (Reopening), FR0107 (Reopening), FR0102 (Reopening), and FR0105 (Reopening). The target amount for this auction is set at IDR 26 trillion, lower than the previous target of IDR 28 trillion. The results of the Government Securities (SUN) auction held on January 7 show that the total incoming bids amounted to IDR 31.66 trillion, lower than the previous auction on December 10, 2024, which recorded IDR 38.98 trillion in bids. The nominal amount allocated in this auction totaled IDR 26.2 trillion, falling short of the government's target of IDR 28 trillion. Consequently, the bid-to-cover ratio for this auction was 1.21x. BRI Danareksa Sekuritas estimates that total incoming bids for the upcoming auction could range between IDR 30 trillion and IDR 40 trillion, with an expected bid-to-cover ratio between 1.15x and 1.54x. (Sources: DJPPR, BRIDS Estimated)
- Coordinating Minister for Economic Affairs ensure that the minimum deposit term for export proceed will be lengthened to 12 months from the current 3 months. Gov’t will provide additional incentives for the exporters. The law is in the finalization stage and will be published in the near future. (Bisnis)
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