HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 7.047% on April 22, 2024, vs 7.040% the day before.
- Government bonds volume was IDR24.87 trillion, and it was dominated by short term (< 5 years). It was declined than the previous day transaction of IDR69.69 trillion. The volume lower than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR9.47 trilion dropped from the previous day's transaction which amount to IDR13.35 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,260.34 billion, dominated by short term (< 5 years). The transaction volume fell compared to the previous day's volume of IDR2,599.96 billion. The volume lower compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR1,185.34 billion fell from the previous day's transaction of IDR2,060.96 billion.
- The Rupiah exchange rate against the US Dollar strengthened by 0.12% to IDR16,235 from IDR16,255 while the JCI dropped -0.19% from 7,087 to 7,074. Then Brent was up from 88.01 to 88.03 USD per barrel, while WTI Cushing Crude Oil Spot price increased from 82.73 to 83.14 USD per barrel.
GLOBAL UPDATES
- Eurozone fiscal debt to GDP fell to 3.6% in 2023 (vs 2022’s 3.7%), the lowest number since 2020. The bloc members managed to improve their fiscal health after enormous debt issuance during covid. (Eurostat)
DOMESTIC UPDATES
- The government is poised to conduct an auction for Sharia Securities (SBSN) or Sovereign Sukuk on Tuesday, April 23, 2024. Among the series up for offering are SPNS22102024 and SPNS20012025 (both New Issuances), as well as PBS032, PBS030, PBS004, PBS039, and PBS038 (all Reopenings). The targeted amount for this auction stands at Rp11 trillion, indicating a decrease from the previous target of Rp12 trillion. During the preceding Sovereign Sharia Securities auction held on March 19, the total bids reached Rp21.07 trillion, surpassing the previous auction's total of Rp17.05 trillion, which took place on March 5, 2024. However, the winning amount in the March 19 auction matched the government's target at Rp12 trillion, surpassing the previous auction's amount of Rp7.38 trillion. As a result, the bid-to-cover ratio for the March 19 auction stood at 1.76x. BRI Danareksa Sekuritas has provided an estimated range for the upcoming auction's total incoming bids, projecting it to fall between IDR17 trillion and IDR27 trillion, with an anticipated bid-to-cover ratio ranging from 1.54x to 2.45x. (DJPPR)
- Trade Balance in Mar-24 reached USD4.47bn on the back of higher m-m growth in export and a decline in import. The figure was significantly higher than our/cons estimates of USD1.04/1.09bn where we expect slow performance in export. Export in Mar-24 was amounted to USD22.4bn, an increase of 16.4% m-m but still declined annually at -4.2%. The three main commodities of Indo Export rose on a monthly basis, with Iron & Steel (HS 72) led with 27% m-m growth. Animal or Vegetable Fats and Oil (HS 15), which consist of Palm Oil, followed with 19.3% m-m growth. Mineral Fuels (HS 27), which contain coal, rose 2.1% m-m. All three categories still decline annually. Import in Mar-24 was amounted to USD17.96bn (-12.8% y-y | -2.6% m-m). On a monthly basis, import fell across usage categories. Import of consumption goods and Raw Material decline by 0.7% m-m, while import of capital goods decline materially at an 11.3% rate. (BPS)
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