HIGHLIGHTS

  1. As of August 16, 2024, the yield on the 10-year U.S. Treasury bond declined by 5 basis points to 3.89% from the previous week. In contrast, the 2-year U.S. Treasury yield increased by 1 basis point to 4.06%. On the other hand, the yield on the 10-year Indonesian Government Bond (INDOGB) decreased by 5 basis points to 6.72%, down from 6.77% on August 9, 2024.
  2. The US Dollar Index fell by 0.24% week-on-week. Conversely, the Indonesian Rupiah strengthened by 1.48%, closing at IDR 15,690 per US dollar on August 16, 2024. Additionally, Indonesia’s 5-year Credit Default Swap (CDS) narrowed by 7 basis points, settling at 71 basis points as of August 16, 2024.
  3. The total volume of government bond transactions amounted to IDR 37.07 trillion, with medium-term bonds (5-15 years) being the most traded. This represents a decline from the previous day's volume of IDR 37.23 trillion and is below the year-to-date average of IDR 44.83 trillion. Outright transactions in government bonds totaled IDR 12.28 trillion, down from IDR 27.56 trillion recorded the previous day.
  4. Corporate bond transactions totaled IDR 1,025 billion, predominantly in short-term bonds (less than 5 years). This is a decrease from the previous day's volume of IDR 2,193 billion and is below the year-to-date average of IDR 1,983 billion. Outright transactions for corporate bonds also amounted to IDR 1,025 billion, down from IDR 2,183 billion the day before.
  5. The Jakarta Composite Index (JCI) increased by 0.30%, rising from 7,410 to 7,432. Brent crude oil prices advanced from USD 82.87 to USD 84.15 per barrel, while the WTI Cushing Crude Oil Spot price rose from USD 76.98 to USD 78.16 per barrel.

DOMESTIC UPDATES

  1. 2025 fiscal budget draft shows tax revenue to grow by 14%, offseting the 8% contraction expected in non-tax revenue. Spending is expected to 6% y-y with priority spending to grow by 8%. Education spending to grow by 23%, accomodating the MBG cost for 15.4mn students. Fiscal deficit is expected to lower to 2.5% of GDP from 2.7% in ‘24F. (MoF)

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