Global Market Update
- On October 1st, 2024, the US 10-Year Government Bond yield closed at 3.7315%, a slight decrease of 4.94-bps compared to the previous close.
- The unemployment rate in the Euro Area remained steady at 6.4% in August 2024, matching the previous month and staying at its lowest level on record. This aligns with market expectations and shows the resilience of the labor market despite the European Central Bank’s recent monetary tightening.
- In September 2024, US private businesses added 143,000 jobs, the highest increase in three months and exceeding expectations of 120,000.
Sources: Automatic Data Processing, Inc., Eurostat, Bloomberg, and Trading Economics.
Domestic Market Update
- On October 2nd, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.5610%.
- Fitch Ratings Indonesia has assigned an ‘AA-(idn)’ rating to PT BFI Finance Indonesia Tbk’s sixth bond programme and its first tranche of bonds, indicating a very low level of default risk. The programme, which has a total size of up to IDR 6 trillion, includes three series of bonds: Series A consisting of IDR 100 billion at a 6.60% interest rate maturing in October 2025, Series B totaling IDR 200 billion at 6.80% maturing in September 2026, and Series C amounting to IDR 300 billion at 6.90% maturing in September 2027.
- PEFINDO has assigned an idBBB- rating with a stable outlook to PT Citilink Indonesia, reflecting its solid business position and moderate fleet size serving extensive domestic routes. Nonetheless, the rating is limited by Citilink’s weak financial health and fierce competition in the high-risk airline sector.
Sources: Fitch Ratings, PEFINDO, PHEI, and Bloomberg.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.4717% – 6.6025% for Tomorrow. Recommendations: FR0102, FR0062, FR0088, FR0093, FR0091, PBS033, PBS005, PBS039, ORI023T6, ORI025T6 and ORI024T6.