HIGHLIGHTS
- The 10-year UST yield decreased to 4.37% on Nov 30, compared to previous week's close at 4.47% on Nov 24 after touching 4.27% on Nov 29.
- Meanwhile, the benchmark 10-year INDOGB yield also moved volatile to 6.62% on Dec 1, compared to last Friday's close of 6.66%, after touching 6.73% on Nov 27. The dollar index weakened 0.12% from the previous week, while the Rupiah strengthened 0.51% at the same time, closing at IDR15,485 per US dollar on December 1, 2023. On the other hand, Indonesia's 5-year CDS rose 1 bps to 76 bps on November 30, 2023.
- Despite its volatility, the SBN yield has fallen by 47bps m-m to 6.53% on Nov 30. It recorded the biggest monthly gain this year by 2.50% and 7.39% cumulative gain this year.
- Government bonds volume was IDR33.48 trillion, and it was dominated by short term (< 5 years). It was dropped than the previous day transaction of IDR45.32 trillion. The volume lower than its YTD average of IDR44.97 trillion. While the outright transaction reached IDR10.63 trilion dropped from the previous day's transaction which amount to IDR18.31 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,237.49 billion, dominated by short term (< 5 years). The transaction volume fell compared to the previous day's volume of IDR1,810.82 billion. The volume lower compared to this year's average of IDR1,959.74 billion. Meanwhile, outright transaction recorded at IDR1,220.69 billion fell from the previous day's transaction of IDR1,810.62 billion.
- The JCI declined -0.29% to 7,060 from 7,081. Then Brent declined from 82.37 to 80.60 USD per barrel, while WTI Cushing Crude Oil Spot price declined from 77.86 to 75.96 USD per barrel.
GLOBAL UPDATES
- Manufacturing PMI November Update. China PMI returned to expansion pace at 50.7 (vs. Oct's 49.5). Eurozone contraction rate softened to 44.2 (vs. 43.1). UK's reached 7-month high at 47.2 (vs. 44.8). US S&P PMI fell to 49.4 (vs. 50) while US ISM PMI was unchanged at 46.7. (Trading Economics)
DOMESTIC UPDATES
- Nov 23 headline Inflation was recorded at 2.85% y-y / 0.38% m-m, marking the 2nd consecutive acceleration since the Sep’s low. Core Inflation continues the disinflation trend, reaching 1.82% y-y, at a 22-month low. (Indonesia Statistics)
- Volatile Food inflation accelerated to 7.59% y-y, reaching a 9-month high. Rice prices remained the primary annual contributor, though the impact on monthly inflation diminished. Administered Price inflation stabilized at 2.07% y-y (vs Oct's 2.12%).
- Indonesia Manufacturing PMI in November slightly rose to 51.7 (vs. 51.5). Output rose the most since August and employment increased. Input cost inflation hit 12-month high while output cost inflation hit 9-month high. Sentiment improved but remained below the average. (S&P Global)
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