Global Market Update
- On October 31st, 2024, the US 10-Year Government Bond yield closed at 4.2844%, a slight decrease of 1.6-bps compared to yesterday.
- The Bank of Japan kept its key interest rate at 0.25% in October, its highest since 2008, in line with expectations. Governor Kazuo Ueda cited a need to assess global economic uncertainties after rate hikes in March and July.
- Euro Area inflation rose to 2% in October 2024 from 1.7% in September, slightly exceeding forecasts of 1.9%. This year-end increase, driven by base effects as last year’s energy price drops are no longer factored in, now aligns with the European Central Bank’s target.
Sources: Bank of Japan, Eurostat, Bloomberg, and Trading Economics.
Domestic Market Update
- On November 1st, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.8750%.
- Fitch Ratings has assigned a final rating of ‘BBB’ to PT Bank KB Bukopin, Tbk’s (KB Bank, BBB/Stable) USD300 million senior unsecured notes. This rating aligns with the expected ‘BBB’ rating provided earlier on October 14, 2024. The final rating reflects Fitch’s receipt of the completed final documentation, confirming that the terms, pricing, and financial close of the notes are consistent with previous information. This completion has simplified the rating process, affirming KB Bank’s stable outlook at the ‘BBB’ level for these notes.
- PT Sarana Multigriya Finansial (Persero), will distribute the third profit-sharing payment of IDR 8,453,131,338, for Sukuk Musyarakah Berkelanjutan I Sarana Multigriya Finansial Tahap II Tahun 2024 on November 6, 2024, as per KSEI’s announcement.
Sources: Fitch Ratings, KSEI, PHEI, and Bloomberg.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.8392% – 6.9774% for Today. Recommendations: FR0102, FR0089, FR0100, FR0062, FR0103, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.