Global Market Update
- On November 20, 2024, the U.S. 10 Years Yield closed at 4.4100%.
- Japan’s October 2024 trade deficit shrank to JPY 461.25 billion from JPY 702.86 billion a year earlier, though it missed the JPY 360.4 billion forecast. Exports rose 3.1% to JPY 9,426.67 billion, reversing September’s 1.7% drop, while imports edged up 0.4%, slowing from 1.8% but exceeding a projected 0.3% decline.
- UK inflation climbed to 2.3% in October 2024, the highest in six months, above the 2.2% forecast and the Bank of England’s target. The rise was mainly driven by higher costs for housing and household services, as Ofgem raised the energy price cap, reducing declines in electricity and gas prices.
Sources: Ministry of Finance – Japan, Office for National Statistics – UK, Trading Economics, and Bloomberg.
Domestic Market Update
- On November 20th, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.9417%.
- Bank Indonesia’s Board of Governors Meeting (November 19–20, 2024) maintained the BI Rate at 6.00%, the Deposit Facility Rate at 5.25%, and the Lending Facility Rate at 6.75%. This decision aligns with monetary policy to keep inflation within the 2.5±1% target for 2024–2025 and support sustainable economic growth, focusing on Rupiah stability amid rising global geopolitical and economic uncertainties, including developments in the U.S.
- Credit growth remained strong in October 2024 at 10.92% (yoy), driven by sustained lending appetite, reallocation of liquidity to credit, DPK growth, and the positive impact of BI’s Macroprudential Liquidity Incentives (KLM). By October 2024, BI had disbursed Rp259 trillion in KLM incentives.
Sources: Bank Indonesia, PHEI, and Bloomberg.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.8257% – 6.9635% for Today. Recommendations: FR0102, FR0089, FR0105, FR0100, FR0062, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.