HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.448% on September 24, 2024, vs 6.467% the day before. Meanwhile, UST 10yr yield sliped 1bps to 3.74% yesterday.
- Government bonds volume was IDR46.08 trillion, and it was dominated by short term (< 5 years). It was increased than the previous day transaction of IDR36.35 trillion. The volume higher than its YTD average of IDR45.72 trillion. While the outright transaction reached IDR26.88 trilion advanced from the previous day's transaction which amount to IDR18.45 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR2,423 billion, dominated by short term (< 5 years). The transaction volume was up compared to the previous day's volume of IDR1,460 billion. The volume higher compared to this year's average of IDR1,896 billion. Meanwhile, outright transaction recorded at IDR2,423 billion increased from the previous day's transaction of IDR1,460 billion.
- The Rupiah exchange rate against the US Dollar strengthened by 0.10% to IDR15,185 from IDR15,200 while the JCI was up 0.04% from 7,776 to 7,778. Then Brent declined from 76.08 to 75.13 USD per barrel, while WTI Cushing Crude Oil Spot price declined from 71.92 to 71.16 USD per barrel.
GLOBAL UPDATES
- China Central Bank has announced several monetary stimulus measures to tackle the ongoing economic challenges. The stimulus package includes several key rate reductions:
- A 50bps cut to the Reserve Requirement Ratio (RRR), which is expected to inject approximately CNY 1 tn into the financial system.
- A reduction in the 7-day reverse repo rate to 1.5%.
- The Medium-term Lending Facility (MLF), which serves as the basis for the Loan Prime Rate (LPR), will be reduced by 30bps.
- 50bps reduction in outstanding mortgage rates for individual borrowers, easing annual interest expenses by about CNY 150 bn and benefiting roughly 150 million people.
- Lowering of the minimum down payment for second home purchases, from 25% to 15%. (Bloomberg)
DOMESTIC UPDATES
- The auction results for Government Sharia Securities on September 24 revealed total incoming bids of IDR 32.34 trillion, surpassing the previous auction’s IDR 21.89 trillion on September 10, 2024. The series attracting the most interest was PBS032, with a yield range of 6.22% - 6.39% and incoming bids totaling IDR 9.88 trillion. This was followed by PBS030 and PBS038, which received bids of IDR 6.81 trillion and IDR 5.95 trillion, respectively. PBS030 had a yield range of 6.29% - 6.55%, while PBS038 offered a yield range of 6.83% - 6.91%. Ultimately, IDR 10 trillion was awarded in this auction, exceeding the government's target of IDR 8 trillion, resulting in a bid-to-cover ratio of 3.23x. (DJPPR)
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