HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.654% on March 19, 2024, vs 6.653% the day before. Meanwhile, at the same time, the 10-year UST yield fell to 4.30%, from 4.34% the day before.
- Government bonds volume was IDR30.97 trillion, and it was dominated by short term (< 5 years). It was fell than the previous day transaction of IDR57.06 trillion. The volume lower than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR14.47 trilion declined from the previous day's transaction which amount to IDR19.72 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,793.75 billion, dominated by short term (< 5 years). The transaction volume was up compared to the previous day's volume of IDR1,793.15 billion. The volume lower compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR1,790.28 billion declined from the previous day's transaction of IDR1,793.15 billion.
- The USDIR weakened by 0.16% to IDR15,715 from IDR15,690 while the JCI was up 0.47% from 7,302 to 7,337. Then Brent advanced from 84.78 to 86.23 USD per barrel, while WTI Cushing Crude Oil Spot price was up from 81.04 to 82.72 USD per barrel.
GLOBAL UPDATES
- The Bank of Japan scrapped the world’s last negative interest rate, ending the most aggressive monetary stimulus program in modern history, while also indicating that financial conditions will stay accommodative for now. The BOJ’s board voted 7-2 to set a new policy rate range of between 0% and 0.1%, shifting from a -0.1% short-term interest rate. The BOJ also scrapped its complex yield curve control program while pledging to continue buying long-term government bonds as needed, and ended purchases of exchange-traded funds. The lack of signaling on any future rate hikes weighed on the yen — which slid past the closely watched 150 mark versus the dollar — while benchmark government bond yields edged lower. (Bloomberg)
- European Central Bank Vice President Luis de Guindos reiterated that he and his colleagues will have much more information to decide on interest rates when they meet in June. The ECB will have “far more data” to better evaluate its decisions in June, de Guindos said. ECB policymakers are converging toward a first reduction in borrowing costs at their decision in June. (Bloomberg)
DOMESTIC UPDATES
- The auction results for Shariah Government Securities on March 19 indicated a substantial increase in total bids, amounting to IDR21.07 trillion, compared to the previous auction held on March 5, 2024, which stood at IDR17.05 trillion. The series PBS032 emerged as the frontrunner with bids totaling IDR6.93 trillion and a yield range of 6.58% - 6.76%. It was closely followed by SPNS02122024 and PBS038, attracting bids of IDR4.41 trillion and IDR4.31 trillion respectively. SPNS02122024 had a yield range of 6.40% - 6.65%, while PBS038 ranged between 6.95% - 7.10%. Consequently, the total amount awarded in this auction matched the government's target of IDR12 trillion, reflecting a significant increase from the previous auction's IDR7.38 trillion. This resulted in a bid-to-cover ratio of 1.76x. ( DJPPR)
- The Ministry of Finance reported that the realization of the budget for social protection had reached IDR 37.9 trillion or 7.6% of the ceiling until February 2024. This realization increased by 10.5% from the same period last year. From this realization, IDR 22.6 trillion was channeled through Ministry/institution. Ministry of Social Affairs amounting to IDR 12.8 trillion including for the PKH program and basic food cards. Ministry of Manpower amounting to IDR 87.6 billion for the job loss insurance program (JKP). BNPB amounting to IDR 0.8 billion for implementing disaster emergency response. Then, IDR 14.3 trillion was distributed through non-ministerial/institutional spending for energy subsidies and finally, through transfers to regions (TKD) reaching IDR 900 billion, it was distributed for direct village cash assistance. (Kontan)
- Minister of Finance Sri Mulyani Indrawati reported that tax revenues by the end of February 2024 had collected IDR 269.02 trillion. Based on monthly trends, tax revenue in February 2024 was only IDR 119.77 trillion, lower than January 2024 which was IDR 149.25 trillion. On a monthly basis, tax revenues in February will indeed be lower compared to January because in January there are revenue boosters such as bonuses and the effects of the Christmas and New Year (Nataru) holidays. (Kontan)
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