HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.708% on January 18, 2024, vs 6.705% the day before. Meanwhile, at the same time, the 10-year UST yield rose to 4.14%, from 4.10% the day before.
- Government bonds volume was IDR37.54 trillion, and it was dominated by short term (< 5 years). It was fell than the previous day transaction of IDR52.64 trillion. The volume lower than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR17.06 trilion was up from the previous day's transaction which amount to IDR14.27 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR971.35 billion, dominated by short term (< 5 years). The transaction volume was up compared to the previous day's volume of IDR710.67 billion. The volume lower compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR967.65 billion was up from the previous day's transaction of IDR710.67 billion.
- The Rupiah exchange rate against the US Dollar strengthened by 0.13% to IDR15,620 from IDR15,640 while the JCI advanced 0.73% from 7,201 to 7,253. Then Brent declined from 79.80 to 79.38 USD per barrel, while WTI Cushing Crude Oil Spot price advanced from 72.40 to 72.56 USD per barrel.
GLOBAL UPDATES
- Raphael Bostic, President of the Federal Reserve Bank of Atlanta and a voting member of the Federal Open Market Committee (FOMC) in 2024, reiterated his anticipation of the first rate cut occurring in the third quarter of 2024. He maintains the flexibility to expedite the rate cut if inflation declines more rapidly than his projections. Among the voting members for the current year, Bostic is the first to specify the timing of the potential rate cut. (Bloomberg)
- ECB President Christine Lagarde stated that a race cut in summer is "likely" while still acknowledging the high level of uncertainty and some data that are still not anchored. (Bloomberg)
DOMESTIC UPDATES
- The Business Activity Survey (SKDU) indicates a decrease in business activities in 4Q23, with a Net Weighted Balance (SBT) of 13.2% compared to 15.7% in 3Q23. Sectors associated with the holiday season, such as Transportation and Storage, Accommodation and Restaurants, and Information and Communication, are experiencing increased activities. However, the Manufacturing Industry continues to exhibit lower activities, particularly in Food and Beverage (0.04% vs. 0.60%) and Base Metal (0.07% vs. 0.31%). Despite this, businesses remain confident about higher activities in 1Q24. (Bank Indonesia)
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