Global Market Update
- On September 20th, 2024, the US 10-Year Government Bond yield closed at 3.7131%, a slight increase of 2.82-bps compared to the previous close.
- Singapore’s annual inflation rate dropped to 2.2% in August 2024, the lowest since April 2021, in line with market expectations. Food prices remained steady at 2.7%, while costs slowed for housing & utilities (3.4%), transport (0.2%), healthcare (3.7%), and education (3.0%).
- In September, S&P Global Flash United Kingdom PMI dropped to 52.9 from 53.8 in August, still signaling growth above 50.0. Manufacturing grew slightly faster than services, though both sectors slowed compared to the previous month.
Sources: Statistics Singapore, S&P Global, Bloomberg, and Trading Economics.
Domestic Market Update
- On September 23rd, 2024, the Indonesia Government Bond Yield closed at 6.5054%, an increase of 2.88-bps compared to previous close.
- In August 2024, Indonesia’s broad money supply (M2) grew by 7.3% YoY, reaching IDR 8,973.7 trillion, slightly lower than July’s 7.6% growth. The M2 development was influenced by credit distribution and net foreign assets. Credit growth slowed to 10.9% (yoy) from 11.7% in July, while net claims on the central government rose by 12.5%, down from 15.9% in July. Net foreign assets contracted by 1.1%, following a 0.1% contraction in July.
- Fitch Ratings Indonesia downgraded PT Hino Finance Indonesia’s rating to ‘AA+(idn)’ from ‘AAA(idn)’ and kept it on Rating Watch Negative (RWN). The downgrade reflects concerns over the weaker credit profile of Hino Motors Co., Ltd., a 40% shareholder, reducing the support factored into HFI’s rating.
Sources: Bank Indonesia, Fitch Ratings, KSEI, Bloomberg, and PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.4460% – 6.5762% for Tomorrow. Recommendations: FR0062, FR0088, FR0091, FR0093, FR0064, PBS032, PBS038, PBS036, ORI021, ORI022 and ORI023T3.