Global Market Update
- On September 19th, 2024, the US 10-Year Government Bond yield closed at 3.7131%, a slight increase of 0.93-bps compared to the previous close.
- The Bank of Japan kept its key short-term interest rate at 0.25% during its September meeting, the highest since 2008. This aligns with market expectations after rate hikes in March and July. The decision reflects a cautious approach, with the board emphasizing the need for further market monitoring.
- The People’s Bank of China kept its key lending rates unchanged in September, with the one-year loan prime rate at 3.35% and the five-year rate at 3.85%, both at record lows after July’s unexpected cuts.
Sources: Bank of Japan, People’s Bank of China, Bloomberg, and Trading Economics.
Domestic Market Update
- On September 20th, 2024, the Indonesia Government Bond Yield closed at 6.4766%, marking its another lowest level in six months, while the ICBI reached a six-month peak, hitting 396.1579.
- Fitch Ratings placed PT Adaro Indonesia’s ‘BBB-‘ rating and its USD 750 million notes on Rating Watch Negative. This is due to concerns that Adaro’s business will weaken after its parent company, PT Adaro Energy Indonesia, plans to spin off its thermal coal business. Adaro’s focus on thermal coal could limit earnings diversification, despite a strong balance sheet.
- Based on KSEI’s data, PT Sarana Multi Infrastruktur (Persero) will carry out a corporate action for its ‘OBLIGASI BERKELANJUTAN II SARANA MULTI INFRASTRUKTUR TAHAP IV TAHUN 2020 SERI C,’ with an interest rate of 8% p.a., by paying the 17th coupon on October 21st, 2024.
Sources: Fitch Ratings, KSEI, Bloomberg, and PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.4290% – 6.5588% for next Monday. Recommendations: FR0062, FR0088, FR0093, FR0091, FR0064, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.