Global Market Update
- On May 7th, 2024, the yield on the US 10-year Government Bond closed at a level of 4.457%, marking a decrease of 3 bps from the previous day.
- German industrial output decreased by 0.4% MoM in March 2024, contrasting with market expectations of a 0.6% decline. This marked the initial downturn this year, with manufacturing production, excluding energy and construction, declining by 0.4%, while energy production contracted by 4.2%.
- In April 2024, Taiwan’s trade surplus decreased to $6.46 billion from $6.83 billion in the same period last year, falling below market expectations of $8.03 billion. Imports rose by 6.6% to $31.02 billion, mainly due to higher purchases of tech products, while exports increased by 4.3% to $37.48 billion, driven by a significant rise in sales of tech goods.
Sources: Federal Statistical Office of Germany, Ministry of Finance,R.O.C, Trading Economics and Binaartha.
Domestic Market Update
- On May 8th, 2024, the Indonesia Government Bond Yield Curve for the 10-year bond closed at a level of 6.9587%, remaining stable compared to yesterday, with only a decrease of 0.03 bps.
- Indonesia’s foreign exchange reserves stayed robust, reaching $136.2 billion by the close of April 2024, though slightly down from $140.4 billion in March 2024. The decrease was predominantly a result of government payments on foreign debt and the need to stabilize the Rupiah amid elevated uncertainty in the global financial markets.
- On May 8th, 2024, the Jakarta Composite Index (JCI) closed at a level of IDR 7,088.80, contracting by 49-bps daily. On the other hand, the Rupiah’s JISDOR rate closed at a level of IDR 16,081, depreciating by 17 bps compared to the previous day.
Sources: PHEI, IDX, Bank Indonesia, and Binaartha.Market ProjectionWe predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.5004% – 7.1846% for next Monday. Recommendations: FR0102, FR0089, FR0062, FR093, and FR0088.