Global Market Update
- On November 21, 2024, the U.S. 10 Years Yield closed at 4.4218%.
- Japan’s annual inflation rate declined to 2.3% in October 2024, down from 2.5% in September, marking the lowest level since January. The slowdown was driven by smaller increases in electricity prices (4.0% vs. 15.2% in September) and gas prices (3.5% vs. 7.7%), as the impact of the May energy subsidy removal lessened.
- The UK GfK Consumer Confidence Index rose 3 points to -18 in November 2024, the first increase in three months. The improvement was driven by lower interest rates, higher wages, and easing tax concerns, beating expectations of a drop to -22.
Sources: Ministry of Internal Affairs & Communications – Japan, GfK Group,Trading Economics, and Bloomberg.
Domestic Market Update
- On November 21st, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.9626%.
- Indonesia’s Balance of Payments (BOP) improved in Q3 2024, strengthening external resilience. The BOP recorded a surplus of $5.9 billion, reversing a $0.6 billion deficit in Q2 2024. This improvement was driven by a higher surplus in the capital and financial account and a narrower current account deficit.
- The Indonesian government will auction Government Securities on November 26, 2024. Treasury Bills (SPN), offered at a discount, include SPN03250228 (maturing February 28, 2025) and SPN12251127 (maturing November 27, 2025). Treasury Bonds (ON), with fixed coupons, include FR0104, FR0103, FR0097, FR0102, and FR0105. Non-competitive purchase limits are set at 99% for SPN and 30% for ON.
Sources: : DJPPR Kemenkeu, Bank Indonesia, PHEI, and Bloomberg.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.9600% – 7.1006% for Today. Recommendations: FR0102, FR0089, FR0105, FR0100, FR0062, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.