HIGHLIGHTS
- On June 12, 2024, the yield for 10-year Indonesia Government Bonds rose marginally to 7.024%, up from 7.020% the previous day. Meanwhile, the 10-year U.S. Treasury yield fell to 4.31%, from 4.39% the previous day.
- The volume of government bonds traded amounted to IDR 35.12 trillion, primarily involving short-term bonds (less than 5 years), a decrease compared to the previous day's transaction of IDR 43.38 trillion and below the year-to-date average of IDR 44.83 trillion. Outright transactions totaled IDR 9.66 trillion, a decrease from the previous day's IDR 25.79 trillion.
- Corporate bonds saw a total volume of IDR 1,164.90 billion, with short-term bonds dominating. This marked an increase from the previous day's volume of IDR 601.95 billion but remained below the yearly average of IDR 1,982.85 billion. Outright transactions amounted to IDR 1,027.90 billion, up from the previous day's IDR 519.95 billion.
- The Rupiah weakened slightly against the US Dollar by 0.03% to IDR 16,295 from IDR 16,290, while the Jakarta Composite Index (JCI) declined by -0.08% from 6,856 to 6,850. Brent crude oil prices rose from 79.97 to 80.61 USD per barrel, and WTI Cushing Crude Oil Spot prices increased from 77.74 to 77.90 USD per barrel.
GLOBAL UPDATES
- The Fed leave the FFR unchanged at 5.5%, noting a progress in inflation and gradual coolling in labor market. The new dot plot implies a 25bps rate cut in 2024, lower than 75bps rate cut projected in March. However, they increase expectation for 2025 rate cuts to 100bps from 75bps in March. Overall projections on GDP and Unemployment Rate remained the same. Meanwhile, Core PCE projection is raised to 2.8% y-y in 2024 (vs. 2.6% in March) and to 2.3% in 2025 (vs. 2.2% in March). (Federal Reserve)
- US CPI, preceding the FOMC decision by only a matter of hours, was recorded at 3.3% in May-24 (vs. est. 3.4% and Apr’s 3.4%). The softer reading came from the decline in energy prices. The Core CPI rose 3.4% y-y, also lower than the estimate of 3.5% and Apr’s 3.6%. (Bloomberg)
DOMESTIC UPDATES
- World Bank upgraded 2024 Indonesia GDP growth to 5% from 4.9%. The previous estimate was incorporating the expected slowdown in China, despite the strong growth in US. However, with the recent upgrade in China, Indonesia economy will be benefited. The report also stated that strong fiscal rules are needed to reduce political influences and build its credit credibility. (Bisnis)
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