HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 7.130% on January 07, 2025, vs 7.062% the day before. Meanwhile yield UST 10yr rose 5bps to 4.67% yesterday.
- Government bonds volume was IDR51.91 trillion, and it was dominated by medium term (5-15 years). It was advanced than the previous day transaction of IDR42.75 trillion. The volume lower than its YTD average of IDR56.89 trillion. While the outright transaction reached IDR26.63 trilion was up from the previous day's transaction which amount to IDR8.34 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR4,740 billion, dominated by short term (< 5 years). The transaction volume increased compared to the previous day's volume of IDR2,574 billion. The volume higher compared to this year's average of IDR3,177 billion. Meanwhile, outright transaction recorded at IDR4,739 billion increased from the previous day's transaction of IDR2,364 billion.
- The Rupiah exchange rate against the US Dollar strengthened by 0.40% to IDR16,131 from IDR16,195 while the JCI increased 0.04% from 7,080 to 7,083. Then Brent increased from 76.65 to 77.51 USD per barrel, while WTI Cushing Crude Oil Spot price declined from 73.96 to 73.56 USD per barrel.
GLOBAL UPDATES
- Euro-area inflation accelerated to 2.4% y-y in Dec-24 from 2.2% in Nov-24. The inflation rise still supports the European Central Bank’s gradual approach to reducing interest rates, without derailing them altogether. The increase was largely driven by energy costs, which climbed for the first time since July. (Bloomberg)
DOMESTIC UPDATES
- The results of the Government Securities auction held on January 7, 2024, revealed a total incoming bid of IDR 31.66 trillion, which is lower compared to the previous auction on December 10, 2024, which recorded IDR 38.98 trillion in bids. The series that received the highest incoming bid was the FR0104 series, with a yield range of 6.93% - 7.11%, attracting IDR 9.70 trillion in bids. This was followed by the FR0106 series (new issuance) and the FR0103 series, which garnered IDR 6.46 trillion and IDR 6.20 trillion in bids, respectively. The yield range for the FR0106 series was 7.06% - 7.25%, while the FR0103 series had a yield range of 7.01% - 7.20%. The nominal amount allocated in this auction totaled IDR 26.2 trillion, falling short of the government’s target of IDR 28 trillion. As a result, the bid-to-cover ratio for this auction stood at 1.21x. (DJPPR)
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