Global Market Update
- On August 16th, 2024, the yield on US 10-year Government Bonds decreased by 3.05 basis points to a level of 3.8826%
- In June 2024, the Euro Area reported a trade surplus of EUR 22.3 billion, exceeding expectations of EUR 13.3 billion and surpassing last year’s EUR 18 billion. Imports decreased by 8.6% YoY to EUR 214 billion, led by lower purchases of manufactured goods, machinery, mineral fuels, and chemicals. Exports fell by 6.3% to EUR 237 billion, with declines in shipments of manufactured goods, machinery, chemicals, and mineral fuels.
- In Q2-2024, Hong Kong’s economy grew by 3.3% YoY, up from 2.8% in the previous quarter. This growth was mainly due to a rebound in government spending and a big rise in fixed investments.
Sources: EUROSTAT, Census and Statistics Department – Hong Kong, Trading Economics.
Domestic Market Update
- On August 16th, 2024, the yield on 10-year Indonesian government bonds closed at level of 6.7721%. This resulted in a new 6-month high for the ICBI, reaching 388.8160.
- The Bank Indonesia Residential Property Price Survey (SHPR) shows that residential property prices in the primary market increased slightly in Q2 2024. The Residential Property Price Index (IHPR) grew by 1.76% year-over-year in Q2 2024, which is a bit lower than the 1.89% growth seen in Q1 2024.
- PEFINDO has rated PT Bank Pembangunan Daerah Jawa Tengah (Bank Jateng) as idAA- with a stable outlook. This means the bank is seen as very strong in its market, has solid capital, and good liquidity. However, the rating is affected by a high level of bad loans and a concentrated source of funding.
Sources: Bank Indonesia, PEFINDO, Bloomberg and PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6993% – 6.8347% for today. Recommendations: FR0100, FR0102, FR0097, FR0081, and FR0091.