HIGHLIGHTS
- Bond Market Trends: On February 9th, the 10-year US Treasury yield surged by 14 basis points, reaching 4.17%, compared to the previous week's closing rate of 4.03%. Similarly, Indonesia's 10-year government bond (INDOGB) yield rose to 6.61% on February 7th, up from 6.59% on January 31st.
- Performance of the Dollar and Rupiah: The dollar index appreciated by 0.82% over the previous week, while the Rupiah strengthened by 0.92%, closing at IDR15,635 US dollar on February 7th, 2024. Meanwhile, the 5-year Indonesia Credit Default Swap (CDS) remained stable at 74 basis points on February 7th, 2024.
- Government Bonds Volume: The volume of government bonds reached IDR62.17 trillion, predominantly in short-term (< 5 years) bonds. This marked an increase from the previous day's transaction of IDR47.39 trillion and surpassed the year-to-date average of IDR44.83 trillion. Meanwhile, outright transactions totaled IDR22.35 trillion, down from the previous day's IDR27.97 trillion.
- Corporate Bonds Volume : The total volume of corporate bonds amounted to IDR1,007.65 billion, with short-term (< 5 years) bonds dominating. This volume decreased compared to the previous day's volume of IDR3,830.93 billion and was lower than the year's average of IDR1,982.85 billion. Outright transactions recorded IDR1,007.65 billion, a decrease from the previous day's IDR3,826.48 billion.
- Market Indices: The Jakarta Composite Index (JCI) declined by -0.17% from 7,247 to 7,235. Brent crude oil prices increased from 78.99 to 80.73 USD per barrel, while WTI Cushing Crude Oil Spot price advanced from 72.78 to 73.31 USD per barrel.
GLOBAL UPDATES
- China's consumer prices fell by 0.8% yoy in January 2024, the most in more than 14 years and worse than market forecasts of a 0.5% fall. It was the fourth straight month of decline in CPI, the longest streak of drop since October 2009. Food prices declined at a record pace (-5.9% vs -3.7% in December). Meanwhile, non-food inflation was down to 0.4%. (Trading Economics)
DOMESTIC UPDATES
- State Bonds (SUN) Auction: The government has scheduled a State Bonds auction for Wednesday, February 12, 2024. The auction will include various series, such as SPN03240515 and SPN12250213 (both new issuances), along with reopenings of FR0101, FR0100, FR0098, FR0097, and FR0102. The targeted amount for the auction is set at IDR24 trillion, with a maximum target of IDR36 trillion. BRI Danareksa Sekuritas projects an estimated range for the auction's total incoming bids between IDR17 trillion and IDR27 trillion, with an expected bid-to-cover ratio ranging from 1.41x - 2.25x.
- Indo FX Reserve fell in January to IDR145.1bn from Dec's two-year high at USD146.4bn. The decrease came from the maturity of foreign bonds. (Bank Indonesia)
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