Global Market Update
- On August 22nd, 2024, the yield on US 10-year Government Bonds increased by 5.11 basis points to a level of 3.8521%.
- In July 2024, Japan’s inflation rate stayed at 2.8% for the third month in a row, driven by rising electricity and gas prices after energy subsidies ended. The Bank of Japan (BoJ) said it might raise interest rates if inflation remains above 2%.
- Singapore’s annual inflation rate remained at 2.4% in July 2024, below the expected 2.5% and at its lowest since August 2021, with food prices rising at their slowest pace in over two years.
Sources: Ministry of Internal Affairs & Communications – Japan, Bank of Japan, Statistics Singapore, Bloomberg, and Trading Economics.
Domestic Market Update
- On August 23rd, 2024, the yield on 10-year Indonesian government bonds remained stable, experiencing only a slight decrease of 0.17 basis points, falling to 6.6994%.
- In July 2024, Indonesia’s money supply continued to grow. The M2 level in July 2024 increased by 7.4% YoY to IDR 8,970.8 trillion. The growth of M2 was influenced by credit disbursements in July 2024, which rose by 11.4% YoY.
- PEFINDO has assigned an idAA+(sy) rating to PNM’s new Sukuk Mudharabah Medium Term VI, which can issue up to IDR 2.0 trillion. They have also maintained the same rating for PNM’s existing bonds and sukuk, with a stable outlook. The ratings reflect strong government support, a solid business position, and good liquidity, although average profitability and asset quality are considerations.
Sources: Bank Indonesia, PEFINDO, Bloomberg and, PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6258% – 6.7596% for tomorrow. Recommendations: FR0100, FR0081, FR0101, FR0086, FR0097, PBS038, PBS033, PBS005, ORI025T6, ORI024T6 and ORI023T6.