Global Market Update
- On October 4th, 2024, the US 10-Year Government Bond yield closed at 3.9672%, an increase of 12.14-bps compared to the previous close.
- Japan’s economy showed signs of weakness in August 2024, with the coincident economic index falling to its lowest level since February and the leading index at its lowest since October 2020. Inflation, weak exports, and market fluctuations contributed to the decline, while factory activity shrank but services remained stable. Consumer confidence improved, and unemployment dropped to 2.5%. Despite two interest rate hikes this year, Japan’s economy is recovering moderately, but external risks from major economies are still a concern.
- Euro Area retail sales rose by 0.2% in August 2024, following no change in July, meeting market expectations. Sales of automotive fuel and non-food products both rebounded from the previous month.
Sources: Cabinet Office-Japan, Eurostat, Bloomberg, and Trading Economics.
Domestic Market Update
- On October 7th, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.7201%, an increase of 8.35-bps compared to Friday.
- Indonesia’s foreign exchange reserves remained high at $149.9 billion at the end of September 2024, slightly down from $150.2 billion in August. The change was influenced by the government’s external debt payments.
- The government issued State Sharia Bonds (SBSN) via Private Placement on October 7, 2024, with a nominal value of Rp3 trillion for the PBS037 series. This series is tradable, offers a fixed annual return of 6.875%, and matures on March 15, 2036.
Sources: Bank Indonesia, DJPPR Kemenkeu, PHEI, and Bloomberg.
Market ProjectionWe predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.5951% – 6.7283% for Tomorrow. Recommendations: FR0102, FR0089, FR0100, FR0062, FR0088, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.