Global Market Update
- On August 27th, 2024, the yield on US 10-year Government Bonds increased by 0.56 basis points to a level of 3.8216%.
- Australia’s monthly CPI increased by 3.5% in the year to July, slightly lower than the 3.8% rise in June.
- Japan’s coincident economic index was revised down to 113.2 in June 2024, from an initial 113.7 and the lowest since February. Economic recovery is ongoing despite global challenges. With energy subsidies ending in May, consumer prices are expected to rise, and the BoJ is considering policy changes due to a weak yen.
Sources: Australian Bureau of Statistics, Cabinet Office – Japan, Bloomberg, and Trading Economics.
Domestic Market Update
- On August 28th, 2024, the yield on 10-year Indonesian government bonds experienced a slight increase of 0.69 basis points, reaching 6.6787%.
- Fitch Ratings Indonesia has assigned an ‘A+(idn)’ National Long-Term Rating to PT Bukit Makmur Mandiri Utama’s (BUMA) proposed IDR1.0 trillion bonds, which will be used to repay IDR423 billion in bonds due January 2025 and to fund capex and working capital. Despite an expected increase in BUMA’s EBITDA net leverage to 3.0x in 2024-25 due to lower coal prices, Fitch maintains a Stable Outlook, anticipating that BUMA’s financial profile will remain consistent with its rating.
- PT Provident Investasi Bersama, Tbk (PALM) will undertake a corporate action by paying its 6th coupon and principal for its Obligasi Berkelanjutan I Provident Investasi Bersama Tahap I Tahun 2023 Seri B on September 30th, 2024, with an interest rate of 8.50% p.a.
Sources: Fitch Ratings, KSEI, Bloomberg and, PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6444% – 6.7786% for tomorrow. Recommendations: FR0062, FR0088, FR0093, FR0091, FR0087, PBS038, PBS033, PBS005, ORI0235T6, ORI025T6 and ORI024T6.