Global Market Update
- On July 18th, 2024, the yield on US 10-year government bonds closed at 4.2021%, up by 0.45-bps compared to the previous day.
- In June 2024, Japan’s yearly inflation rate stayed unchanged at 2.8% for the second month in a row, matching its peak since February. Electricity prices remained high at 13.4% (down from 14.7% in May), and gas costs rose by 2.4%, ending a 13-month decline after energy subsidies were fully withdrawn in May.
- Malaysia’s economy grew by 5.8% YoY in Q2-2024, significantly higher than the 4.2% growth in Q1, according to initial data. This marks the strongest GDP growth since Q4 -2022, driven by expansion across all sectors.
Sources: Ministry of Internal Affairs & Communications – Japan, Department of Statistics – Malaysia, and Bloomberg.
Domestic Market Update
- On July 19th , 2024, the yield curve for the 10-year Indonesia Government Bond closed at a level of 6.9880%, marking a slight decrease of 0.14-bps compared to yesterday.
- Fitch Ratings Indonesia has assigned a ‘AA+(idn)’ rating to PT CIMB Niaga Auto Finance’s (CNAF) new IDR 5 trillion Sukuk Wakalah Bi Al-Istitsmar 2024 program. This initiative includes two sukuk issuances: Series A totaling IDR 710 billion with a 6.80% yield maturing in July 2025 (370-day tenor), and Series B totaling IDR 290 billion with a 7.10% yield maturing in July 2027 (three-year tenor).
- Fitch Ratings Indonesia upgraded PT Reasuransi MAIPARK Indonesia’s National Insurer Financial Strength Rating outlook to Positive from Stable at ‘A(idn)’. This reflects MAIPARK’s stronger financial performance and improved capital position.
Sources: PHEI and Fitch Ratings.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6199% – 7.3167% for next Monday. Recommendations: FR0102, FR0081, FR00100, FR0091, and FR0097.