HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 7.120% on June 24, 2024, vs 7.144% the day before.
- Government bonds volume was IDR31.41 trillion, and it was dominated by short term (< 5 years). It was dropped than the previous day transaction of IDR34.23 trillion. The volume lower than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR10.50 trilion dropped from the previous day's transaction which amount to IDR17.14 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR2,570.64 billion, dominated by short term (< 5 years). The transaction volume declined compared to the previous day's volume of IDR3,327.51 billion. The volume higher compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR2,386.54 billion fell from the previous day's transaction of IDR2,997.21 billion.
- The Rupiah exchange rate against the US Dollar strengthened by 0.34% to IDR16,394 from IDR16,450 while the JCI was up 0.13% from 6,880 to 6,889. Then Brent was up from 86.09 to 86.62 USD per barrel, while WTI Cushing Crude Oil Spot price fell from 82.17 to 81.97 USD per barrel.
DOMESTIC UPDATES
- In this week’s Government Debt Securities (SUN) auction, the government aims to raise IDR22tn from this auction, with a maximum target of IDR33tn. The auction will feature several series, including new issuances and reopenings such as SPN03240925 and SPN12250612, along with various other series numbered FR0101, FR0100, FR0098, FR0097, and FR0102. In the last auction 2 weeks ago, we noted slightly lower total bid of IDR42.96tn (vs previous IDR47.11tn), with overall winning nominal amount of IDR22tn. BRI Danareksa Sekuritas projects an estimated range for the upcoming auction's total incoming bids between IDR40 trillion and IDR50 trillion, with an expected bid-to-cover ratio ranging from 1.81x – 2.27x. (DJPPR, BRIDS Estimated)
- Government, accompanied by the Prabowo-Gibran synchronization task force, laid out the update on 5M24 and 2025 fiscal posture. As of 5M24, fiscal balance has turned to a deficit of IDR21.8tn or 0.1% of GDP. Gov't revenue declined by 7.1% y-y while spending jumped to 14% y-y. On a positive note, the primary surplus remain large at IDR184.2tn. Government also stated that they withdraw IDR200tn of SILPA to reduce government bonds issuance in 2024. For 2025, The budget for the Free Nutritious Food Program (MBG) is set at IDR71tn, with a phased implementation, which is inline with our expectations. (Ministry of Finance)
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