HIGHLIGHTS
- The 10-year U.S. Treasury yield decreased by 8 basis points (bps) week-on-week, settling at 3.81% as of August 23, 2024. Similarly, the 2-year U.S. Treasury yield declined by 16 bps to 3.90% during the same period. Correspondingly, the 10-year Indonesian Government Bond (INDOGB) yield dropped by 8 bps, reaching 6.64% on August 23, 2024, down from 6.72% on August 16, 2024.
- The U.S. Dollar Index weakened by 1.08% compared to the previous week, while the Indonesian Rupiah appreciated by 1.27%, closing at IDR 15,490 per U.S. Dollar on August 23, 2024. Additionally, Indonesia's 5-year Credit Default Swap (CDS) declined by 3 bps on a weekly basis, reaching 68 bps on August 23, 2024.
- The trading volume of government bonds reached IDR 52.44 trillion, primarily driven by medium-term bonds (5-15 years). This volume was lower than the previous day's transaction of IDR 54.30 trillion but remained above the year-to-date (YTD) average of IDR 44.83 trillion. Outright transactions amounted to IDR 26.58 trillion, down from IDR 33.54 trillion on the prior day.
- The total volume of corporate bonds was recorded at IDR 2,444 billion, with short-term bonds (< 5 years) dominating the market. This represents an increase compared to the previous day's volume of IDR 879 billion and surpasses this year’s average of IDR 1,983 billion. Outright transactions for corporate bonds were IDR 2,282 billion, also rising from the previous day's transaction volume of IDR 879 billion.
- The Jakarta Composite Index (JCI) increased by 0.74%, moving from 7,489 to 7,544. Meanwhile, Brent crude oil prices slightly declined from USD 79.64 to USD 79.62 per barrel, while the WTI Cushing Crude Oil Spot price rose from USD 72.67 to USD 73.79 per barrel.
GLOBAL UPDATES
- The Fed Chariman Jerome Powell stated that the time has come for policy to adjust, cementing the expectation of rate cut in September. He noted that further cooling of the labor market is not welcomed, emphasizing the upside risks to inflation have diminished while the downside risk to the unemployment have increased. (Bloomberg)
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