HIGHLIGHTS
- The 10-year U.S. Treasury yield increased by 10 basis points (bps) to 4.62% on December 27, 2024, up from 4.52% on December 20, 2024. In contrast, the 2-year U.S. Treasury yield rose by 1 basis point to 4.31% during the same period. Meanwhile, the yield on the 10-year Indonesian Government Bond (INDOGB) decreased by 3 basis points, closing at 7.05% on December 27, 2024.
- The U.S. Dollar Index gained 0.48% week-over-week, while the Indonesian Rupiah depreciated by 0.25%, closing at IDR 16,235 per U.S. Dollar on December 27, 2024. Over the same period, Indonesia's 5-year Credit Default Swap (CDS) remained stable at 79 basis points.
- The volume of government bond transactions totaled IDR 64.07 trillion, with a significant concentration in medium-term bonds (5-15 years). This marked an increase compared to the previous day's volume of IDR 49.94 trillion and surpassed the year-to-date (YTD) average of IDR 45.29 trillion. The outright transactions reached IDR 11.93 trillion, up from the previous day's IDR 8.10 trillion.
- Corporate bond transactions totaled IDR 2,659 billion, primarily driven by short-term bonds (less than 5 years). This represented a decline from the previous day's volume of IDR 4,526 billion but remained above the YTD average of IDR 1,963 billion. The outright transactions amounted to IDR 2,650 billion, down from the previous day's IDR 4,526 billion.
- The Jakarta Composite Index (JCI) declined by 0.41%, falling from 7,066 to 7,037. Meanwhile, Brent crude oil prices increased from USD 72.30 to USD 73.24 per barrel, while the WTI Cushing Crude Oil Spot price decreased slightly from USD 69.81 to USD 69.62 per barrel.
GLOBAL UPDATES
- China Industrial Profits drop deepened to a 4.7% decrease in 11M24, putting the year on track to be the worst on record for industrial businesses. Industrial profits at large Chinese companies fell 7.3% y-y in Nov-24. (Bloomberg)
- The U.S. Treasury Department may need to take "extraordinary measures" by as early as Jan. 14, 2025, to prevent the United States from defaulting on its debt. Treasury currently expects to reach the new limit between January 14 and January 23. (Reuters)
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