Global Market Update
- On September 5th, 2024, the US 10-Year Government Bond closed at 3.7269%, a decrease of 2.83 basis points compared to yesterday.
- The U.S. unemployment rate eased to 4.2% in August 2024 from 4.3% in July, in line with expectations. Unemployment remained at 7.1 million, with permanent job losses unchanged at 1.7 million and temporary layoffs down by 190,000 to 872,000.
- The Euro Area’s GDP grew by 0.2% in Q2-2024, slightly below the 0.3% initially expected, and down from 0.3% Q1-2024. Government spending rose 0.6%, while household consumption fell 0.1%, and investment dropped 2.2%. Exports increased by 1.4%, and imports grew 0.5%. YoY, the economy expanded by 0.6% compared to last year, matching earlier estimates.
Sources: Bureau of Labor Statistics – US, Eurostat, Bloomberg, and Trading Economics.
Domestic Market Update
- On September 6th, 2024, the Indonesia Government Bond Yield closed at 6.6763%, marking a decrease of 1.75 basis points compared to yesterday.
- Indonesia’s foreign exchange reserves reached $150.2 billion at the end of August 2024, up from $145.4 billion in July. The increase was due to tax revenues, oil and gas income, and government loans. The reserves can cover 6.7 months of imports or 6.5 months including debt payments, well above the 3-month international standard. Bank Indonesia says this strengthens the economy.
- Fitch Ratings Indonesia assigned an ‘A(idn)’ rating to PT Pos Indonesia’s proposed sukuk program of up to IDR 1.5 trillion, including the first tranche of up to IDR 1.0 trillion. The funds will be used to repay debt and for working capital.
Sources: Bank Indonesia, Fitch Ratings, Bloomberg, and PHEI.
Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6784% – 6.8133% for next Monday. Recommendations: FR0062, FR0088, FR0093, FR0091, FR0087, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.