HIGHLIGHTS
- US Treasury 10-Year Yield: As of January 26th, the closing yield stood at 4.15%. Subsequently, it experienced a dip on February 1st to 3.87%, only to rebound to 4.03% on February 2nd, 2024 following higher NFP than expected. Concurrently, amidst the volatility of UST, the 10-year yield for Indonesian Government Bonds on February 2nd, 2024, witnessed a descent to 6.52%, compared to the prior closure at 6.65%.
- Dollar Index and Rupiah Exchange Rate: The dollar index depreciated by 0.44% from the preceding week. Conversely, the Rupiah exhibited a 1.02% strengthening during the same period, concluding at IDR15,658 against the US dollar on February 2nd, 2024. On another note, the 5-year Indonesian CDS experienced a 2 bps decrease WoW, settling at 74 bps on February 2nd, 2024, in contrast to the prior week's closure at 76 bps.
- Government bonds volume was IDR106.46 trillion, and it was dominated by short term (< 5 years). It was advanced than the previous day transaction of IDR56.34 trillion. The volume higher than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR48.71 trilion advanced from the previous day's transaction which amount to IDR23.12 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR454.05 billion, dominated by short term (< 5 years). The transaction volume dropped compared to the previous day's volume of IDR1,789.21 billion. The volume lower compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR454.05 billion fell from the previous day's transaction of IDR1,789.01 billion.
- The JCI declined -0.09% from 7,208 to 7,202. Then Brent dropped from 84.13 to 82.74 USD per barrel, while WTI Cushing Crude Oil Spot price fell from 77.82 to 75.85 USD per barrel.
GLOBAL UPDATES
- US added 353k jobs in January 2024, higher than the upwardly revised December’s 333k. The unemployment rate was unchanged at 3.7% while Average Hourly Earnings accelerated to 4.5% y-y from 4.4% in December. (Bloomberg)
DOMESTIC UPDATES
- Government is planning to raise the ceiling price (HET) of MinyaKita, a government issued cooking oil, above the current level of IDR14,000/liter to IDR15,000 after election, citing inflation as the main reason. However, the Association of Vegetable Oil (GIMNI) stated that the production cost of cooking oil hasn’t changed as no changes was observed in palm oil price. (Bisnis)
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