Global Market Update
- On June 18th, 2024, the yield on the US 10-year Government Bond closed at a level of 4.2227%, marking a decrease of 7.18 bps from the previous day
- The annual inflation rate in the UK eased to 2% in May 2024, the lowest since July 2021, down from 2.3% in April and aligning with forecasts. This brought inflation back to the BoE’s targeted 2%, primarily due to a slowdown in food costs (1.7% versus 2.9%), including bread, cereals, vegetables, and items like sugar, jam, syrups, chocolate, and confectionery.
- Japan’s trade deficit shrank to JPY 1,221 billion in May 2024 from JPY 1,382 billion in May 2023, beating expectations of a JPY 1,300 billion shortfall. This was the second straight month of negative trade balance, despite exports showing stronger growth than imports
Sources: Bloomberg, Office for National Statistics – UK, Ministry of Finance – Japan, Trading Economics and Binaartha.
Domestic Market Update
- On June 19th, 2024, the yield curve for the 10-year Indonesia Government Bond closed at a level of 7.0818%, marking a slight increase of 4.11 basis points compared to last Friday
- In May 2024, Indonesia’s trade surplus soared to USD 2.93 billion from USD 0.43 billion the previous year, surpassing expectations of USD 2.74 billion. This was due to a 2.86% increase in exports to USD 22.33 billion, the second consecutive monthly rise. Meanwhile, imports fell sharply by 8.83% to USD 19.40 billion.
- On June 19th, 2024, the government auctioned Government Sukuk, including multiple series (SPNS02122024, SPNS03032025, PBS032, PBS030, PBS004, PBS039, and PBS038) through the Bank Indonesia system. Bids totaled IDR 16.34 trillion, with IDR 8.05 trillion successfully secured across all series.
Sources: BPS, DJPPR Kemenkeu, PHEI, and Binaartha.Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.5140% – 7.1997% for tomorrow. Recommendations: FR0102, FR0089, FR0097, FR062, and FR0093.