HIGHLIGHTS
- The yield on 10-year Indonesian Government Bonds stood at 6.360% on August 22, 2025, compared with 6.332% in the previous session. Meanwhile, UST 10yr yield declined by 7bps to 4.26% yesterday.
- Government bond trading volume amounted to IDR36.41 trillion, predominantly in short-term tenors (< 5 years). This figure was lower than the previous day’s IDR54.52 trillion and below the year-to-date (YTD) average of IDR49.91 trillion. Outright transactions reached IDR25.62 trillion, declining from IDR42.64 trillion recorded in the prior session.
- Corporate bond trading volume was recorded at IDR1.77 trillion, also dominated by short-term tenors (< 5 years). The volume decreased from IDR1.90 trillion in the previous session and remained below the YTD average of IDR3.33 trillion. Outright transactions stood at IDR1.76 trillion, down from IDR1.90 trillion the day before.
- The Rupiah depreciated by 0.37% against the US Dollar to IDR16,345 from IDR16,285, while the Jakarta Composite Index (JCI) declined 0.40% to 7,859 from 7,891. In the commodity market, Brent crude oil rose to USD68.11 per barrel from USD67.71, while WTI Cushing crude climbed to USD63.92 per barrel from USD63.21.
GLOBAL UPDATES
- Jerome Powell turned dovish in Jackson Hole as job risks rise, while still flagging inflation upside. Jul-25 PCE rose 2.6% y/y, core 2.9% (goods 1.1%, housing down, non-housing stable). Tariff impact seen short-lived, long-term expectations anchored. Market took this as a confirmation for September's rate cut. (Bloomberg)
DOMESTIC UPDATES
- Indonesia’s M2 grew 6.5% y-y in Jul-25 from 6.4% in Jun, driven by stronger M1 (+8.7% y-y) and quasi money (+4.8% y-y). Growth was supported by higher net foreign assets (+7.3% y-y) despite weaker credit expansion (+6.6% y-y vs 7.6% in Jun). Meanwhile, adjusted base money (M0) rose 7.0% y-y, slowing from 8.6% previously, reflecting BI’s liquidity operations and shifts in private sector holdings. (Bank Indonesia)
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