Global Market Update
- On September 26th, 2024, the US 10-Year Government Bond yield closed at 3.7963%, a slight increase of 2.82-bps compared to the previous close.
- The People’s Bank of China (PBoC) has lowered the reserve requirement ratio (RRR) for banks by 50-bps, the second reduction this year to support the economy. Effective today, September 27, the average RRR is now 6.6%. This change will free up about CNY 1 trillion for new lending, and the central bank may consider more cuts later this year.
- In September 2024, the economic sentiment indicator (ESI) for the Euro Area fell to 96.2, down from 96.5 in August, which was the highest in over a year. This was slightly below expectations of 96.5. Pessimism increased in the industry and retail sectors, but there were improvements in services, consumer sentiment, and construction.
Sources: People’s Bank of China, European Commission, Bloomberg, and Trading Economics.
Domestic Market Update
- On September 27th, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.5081%.
- Fitch Ratings has affirmed Indonesia Eximbank’s Long-Term Issuer Default Rating (IDR) at ‘BBB’ with a Stable Outlook. They also maintained the Government Support Rating (GSR) at ‘bbb’ and the Short-Term IDR at ‘F2’. The IDR reflects the expectation that the Indonesian government would support the bank, given its role as a policy institution.
- According to KSEI’s information, PT XL Axiata, Tbk (EXCL:IJ) will conduct corporate action regarding its SUKUK IJARAH BKLJT I XL AXIATA THP II TH2017 SR E, by paying its 30th Ijarah Fee, 9.4%, p.a, on October 28th, 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 6.4368% – 6.5669% for Monday. Recommendations: FR0062, FR0088, FR0093, FR0091, FR0064, PBS033, PBS005, PBS039, ORI023T6, ORI024T6 and ORI023T3.