Global Market Update
- On June 7th, 2024, the yield on the US 10-year Government Bond closed at a level of 4.4335%, marking an increase of 14.65 bps from the previous day.
- In Q1 2024, Japan’s economy shrank by 1.8%, better than expected. Business spending didn’t drop as much as predicted, which was forecasted to decline by 2%. Private consumption continued to weaken for the fourth quarter, mainly due to high prices, slow wage growth, and an earthquake at the start of the year.
- In April 2024, Malaysia’s industrial production rose by 6.1% compared to the previous year. It was faster than the 2.4% increase in March but slightly below market expectations. This growth was driven by higher mining and manufacturing activity.
Sources: Bloomberg, Cabinet Office Japan, Department of Statistics Malaysia, Trading Economics and Binaartha.
Domestic Market Update
- On June 10th, 2024, the yield curve for the 10-year Indonesia Government Bond remained closed at a level of 6.9669%, marking a slight increase of 3.6 basis points compared to the previous Friday.
- The Consumer Survey conducted by Bank Indonesia in May 2024 shows that consumers are still feeling confident about the economy compared to the previous month. The Consumer Confidence Index (CCI) for May 2024 is 125.2, which is in the optimistic range (>100).
- As of June 10th, 2024, the rupiah’s Jakarta Interbank Spot Dollar Rate (JISDOR) remained close to the level of 16,000s, standing at 16,290, depreciating by 44-bps compared to last friday.
Sources: Bank Indonesia, PHEI, and Binaartha.Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.4980% – 7.1821% for next Tuesday. Recommendations: FR0102, FR0089, FR0062, FR093, and FR0088.