Global Market Update
- On July 30th, 2024, the yield on US 10-year government bonds continued its slight decline, standing at 4.1394%, down by 3.5 basis points from the previous day.
- The Bank of Japan (BoJ) increased its key short-term interest rate to approximately 0.25% at its July 2024 meeting, up from the previous range of 0 to 0.1% set in March. Additionally, the central bank announced it will cut monthly bond purchases to JPY 3 trillion between January and March 2026, down from the current pace of about JPY 6 trillion, to move towards a more conventional monetary policy.
- In Australia, the Consumer Price Index (CPI) increased by 1.0% this quarter and 3.8% over the year to June 2024. Key price rises were in Housing (+1.1%), Food and non-alcoholic beverages (+1.2%), Clothing and footwear (+3.1%), and Alcohol and tobacco (+1.5%).
Sources: Bank of Japan, Australian Bureau of Statistics Trading Economics, and Bloomberg.
Domestic Market Update
- On July 31st, 2024, the yield on the 10-year Indonesian government bond closed at 6.9420%, a slight decrease of 3.69 basis points from the previous day. Meanwhile, the ICBI continued to rise, reaching a new high of 384.5710.
- On July 30th, 2024, S&P Global Ratings affirmed Indonesia’s ‘BBB’ long-term and ‘A-2’ short-term credit ratings, with a stable outlook. This means they expect Indonesia’s government deficits to remain around 3% of GDP in the next few years, and the growth in commodity industries should keep the country’s external financial position stable,
- Fitch forecasts that Indonesia’s onshore non-financial corporate note issuance will exceed IDR 65 trillion in 2024, driven by substantial refinancing needs and investments in pulp and paper, telecom, and mineral.
Sources: S&P Global Ratings, Bank Indonesia, Fitch Ratings, and PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.9002% – 7.0396% for tomorrow. Recommendations: FR0102, FR0081, FR0100, FR0091, and FR0097.