HIGHLIGHTS

  1. Yield of 10-year Indonesia Government Bonds is 7.062% on July 09, 2024, vs 7.031% the day before. Meanwhile, yield UST 10yr rose 2bps to 4.30% yesterday from the previous day.
  2. Government bonds volume was IDR49.46 trillion, and it was dominated by medium term (5-15 years). It was advanced than the previous day transaction of IDR34.18 trillion. The volume higher than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR41.15 trilion was up from the previous day's transaction which amount to IDR12.44 trilion.
  3. Meanwhile, the total volume of corporate bonds was recorded at IDR2,364 billion, dominated by short term (< 5 years). The transaction volume fell compared to the previous day's volume of IDR3,313 billion. The volume higher compared to this year's average of IDR1,983 billion. Meanwhile, outright transaction recorded at IDR2,262 billion declined from the previous day's transaction of IDR3,313 billion.
  4. The Rupiah exchange rate against the US Dollar strengthened by 0.03% to IDR16,250 from IDR16,255 while the JCI advanced 0.26% from 7,251 to 7,270. Then Brent fell from 89.11 to 87.69 USD per barrel, while WTI Cushing Crude Oil Spot price dropped from 83.88 to 82.33 USD per barrel.

GLOBAL UPDATES

  1. Powell said the risks to the economy have become better balanced. He's watching the signs of continued slowing in inflation thus allowing him to broaden his focus beyond getting inflation down. He's also watching carefully for signs of weakness both in the job market and in the broader economy. Powell will return to Congress on Wednesday to testify in front of the House Committee on Financial Services. (Barron's)

DOMESTIC UPDATES

  1. The DPR RI Plenary Meeting approved the results of preliminary discussions on the R-APBN for the 2025 fiscal year as follows:
    1. Fiscal deficit for next year is estimated to be 2.45% - 2.82% of GDP with state revenue 12.14% - 12.36% of GDP and state expenditure14.59% - 15.18% of GDP.
    2. Economic growth: 5.1% - 5.5%
    3. Inflation rate: 1.5% - 3.5%
    4. Rupiah exchange rate: IDR 15,300 - IDR 15,900 per USD
    5. 10 year SBN yield : 6.9% - 7.2%
    6. Indonesian Crude Oil Price: 75 - 85 USD per barrel
    7. Petroleum lifting: 580 - 605 thousand barrels per day
    8. Natural gas lifting: 1,003 thousand - 1,047 thousand barrels of oil equivalent per day (Source: several media)
  1. Indonesian retail sales rose 2.1% year-on-year in May 2024, following a 2.7% decline in April. This marks the fourth month of growth this year, buoyed by government cash transfers. (Trading Economics)
  2. On July 9, 2024, the government bond auction received bids totaling IDR48.35 trillion, down from the previous auction held on June 25, 2024, which received bids totaling IDR56.39 trillion. FR0100 turned out to be the most sought after series, attracting bids of IDR16.75 trillion with a yield range of 6.97% - 7.20%. It was followed by FR0101 and FR0097 which received bids of IDR14.31 trillion and IDR4.64 trillion respectively. FR0101 had a yield range of 6.87% - 7.02% while FR0097 had a range of 7.07% - 7.20%. The auction successfully allocated IDR24 trillion worth of bonds, meeting the government's target and exceeding the previous auction's allocation of IDR23 trillion. Consequently, the bid-to-cover ratio for this auction was 2.01x. (DJPPR)

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