Global Market Update
- On July 9th, 2024, the yield on US 10-year government bonds closed at 4.3587%, up by 1.76-bps compared to the previous day
- China’s annual inflation rate fell to 0.2% in June 2024 from 0.3% in the previous two months, below market expectations of 0.4%. This marks the fifth consecutive month of rising consumer prices, the lowest since March, amid a fragile economic recovery.
- In June 2024, Japan’s producer prices rose by 2.9% YoY, accelerating from a revised 2.6% growth in the previous month and market expectations.
Sources: Bloomberg, National Bureau of Statistics of China, Bank of Japan, Trading Economics and Binaartha.
Domestic Market Update
- On July 10th , 2024, the yield curve for the 10-year Indonesia Government Bond closed at a level of 7.0484%, marking a slight increase of 0.09-bps compared to previous close.
- Fitch Ratings Indonesia assigned a ‘AAA(idn)’ rating to PT Maybank Indonesia Finance’s (MIF) fourth rupiah bond programme and its first IDR 100 billion tranche, due July 2025 with a 6.7% p.a. interest rate. This rating matches MIF’s National Long-Term Rating by Fitch, reflecting the bonds’ direct, unsecured status equal to MIF’s other debts. The rating is backed by expected strong support from MIF’s parent company, PT Bank Maybank Indonesia Tbk, rated ‘AAA(idn)/Stable’ by Fitch.
- PEFINDO has reaffirmed PT Wijaya Karya (Persero) Tbk (WIKA)’s ratings at idBBB- for its Shelf-Registered bonds and idBBB- (sy) for its Sukuk Mudharabah. The stable outlook reflects WIKA’s important role in government projects and its strong position in the local construction industry. However, the ratings are tempered by WIKA’s weak finances, liquidity concerns, risks from past expansions, and the volatile business environment.
Sources: Fitch Ratings, PEFINDO, PHEI, and Binaartha.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6098% – 7.3056% for tomorrow. Recommendations: FR0102, FR0089, FR0062, FR0093, and FR0088.