Global Market Update
- On October 10th, 2024, the US 10-Year Government Bond yield closed at 4.0608%, a slight decrease of 1.18-bps compared to the previous close.
- In August 2024, UK GDP grew by 1% YoY, slightly below market expectations . Monthly growth was 0.2%, in line with expectations. Services drove the growth, while wholesale activities experienced a decline.
- In September, the U.S. Producer Price Index (PPI) remained unchanged, following a 0.2% rise in August. A 0.2% increase in service prices offset a 0.2% drop in goods prices. Excluding food, energy, and trade services, the index edged up 0.1%, with a 3.2% rise over the past 12 months. Overall, PPI rose 1.8% YoY.
Sources: Office for National Statistics – UK, U.S. Bureau of Labor Statistics, Bloomberg, and Trading Economics.
Domestic Market Update
- On October 11th, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.7284%.
- PEFINDO has affirmed the ratings for PT Waskita Karya (Persero) Tbk (WSKT) as follows: corporate rating at idSD, shelf-registered Bond III Phase IV at idD (due to pending restructuring approval), and SR Bond III Phase II, Phase III, and SR Bond IV Phase I at idB. Bonds III and IV are rated idAAA(gg), and Sukuk Mudharabah I is rated idAAA(sy)(gg), backed by the government. WSKT’s corporate rating reflects a weak financial profile, but it may improve if the company successfully completes its restructuring and meets its financial obligations.
- Based on transaction data from October 7-10, 2024, non-residents recorded a net sell of IDR 2.84 trillion. This includes a net sell of IDR 4.47 trillion in the stock market, a net buy of IDR 4.37 trillion in SBN, and a net sell of IDR 2.73 trillion in SRBI.
Sources: PEFINDO, Bank Indonesia, PHEI, and Bloomberg.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6794% – 6.8143% for Monday. Recommendations: FR0102, FR0089, FR0100, FR0062, FR0088, PBS038, PBS033, PBS005, ORI023T6, ORI024T6 and ORI025T3.