Global Market Update
- On August 26th, 2024, the yield on US 10-year Government Bonds increased by 1.7 basis points to a level of 3.8160%.
- The People’s Bank of China (PBoC) injected CNY 300 billion via a one-year medium-term lending facility (MLF) on August 26, keeping the rate at 2.3% after a 20-bps cut in July. This move, part of a shift toward using short-term rates, followed the maturity of CNY 401 billion in MLF loans, resulting in a net cash drain of CNY 101 billion. The PBoC also injected CNY 471 billion through seven-day reverse repos, maintaining the rate at 1.7%.
- Singapore’s manufacturing production increased by 1.8% YoY in July 2024, bouncing back from a revised 4.3% decline in June and surpassing market expectations of a 1.1% decrease.
Sources: Singapore Economic Development Board, People’s Bank of China, Bloomberg, and Trading Economics.
Domestic Market Update
- On August 26th, 2024, the yield on 10-year Indonesian government bonds experienced a slight decrease of 3.28 basis points, falling to 6.6666%, while the ICBI reached a new high at 390.9974.
- PT Waskita Karya (Persero) Tbk (WSKT) will pay the 12th coupon on September 24th, 2024, for its Series A and Series B bonds. The Series A bond has a 6.1% yearly interest rate and matures on September 24th, 2026. The Series B bond has a 6.8% yearly interest rate and matures on September 24th, 2028.
- PT JACCS Mitra Pinasthika Mustika Finance Indonesia will undertake a corporate action by paying its 20th coupon and principal for its Obligasi MPM Finance I Tahun 2019 Seri C on September 24th, 2024, with an interest rate of 9.75% p.a.
Sources: KSEI, PEFINDO, Bloomberg and, PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6582% – 6.7928% for today. Recommendations: FR0062, FR0088, FR0093, FR0091, FR0087, PBS038, PBS033, PBS005, ORI025T6, ORI024T6 and ORI023T6.