Global Market Update
- On July 16th, 2024, the yield on US 10-year government bonds closed at 4.1576%, down by 7.18-bps compared to the previous day.
- In June 2024, inflation in the Euro Area was 2.5%, significantly lower than the 5.5% recorded a year ago. Energy and food prices decreased slightly, while prices for services remained unchanged. Non-energy goods saw a slight increase.
- In June 2024, the UK’s annual inflation rate remained stable at 2% and staying at its lowest level since 2021. The main increase was driven by higher prices in restaurants and hotels
Sources: Eurostat, Office for National Statistics – UK, and Trading Economics.
Domestic Market Update
- On July 17th , 2024, the yield curve for the 10-year Indonesia Government Bond closed at a level of 7.0030%, marking a slight decrease of 2.24-bps compared to yesterday.
- Bank Indonesia decided to maintain the BI-Rate at 6.25%, the Deposit Facility interest rate at 5.50%, and the Lending Facility interest rate at 7.00%. This decision aligns with a pro-stability monetary policy aimed at preemptively and forward-looking measures to ensure inflation remains within the target range of 2.5±1% for 2024 and 2025.
- Fitch Ratings affirmed PT Penjaminan Infrastruktur Indonesia (Persero)’s credit ratings: ‘BBB’ for foreign and local currencies, ‘F2’ for short-term foreign currency, and ‘AAA(idn)’ nationally in Indonesia. These ratings indicate low credit risk with a stable outlook. Fitch sees IIGF closely tied to Indonesia’s sovereign credit (rated BBB stable), given its pivotal role in boosting national economic growth through infrastructure projects.
Sources: Bank Indonesia, PHEI, Fitch Ratings and Trading Economics.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6177% – 7.3143% for tomorrow. Recommendations: FR0102, FR0089, FR0062, FR0093, and FR0088.