HIGHLIGHTS
- The yield on the US Treasury 10-year note decreased by 8 basis points to 4.42% on May 17, 2024, from 4.50% on May 10, 2024. Concurrently, the 2-year UST yield declined by 4 basis points over the week, reaching 4.83% on May 17, 2024. As a result, the yield on the 10-year Indonesian Government Bonds (INDOGB) fell by 3 basis points, settling at 6.93% on May 17, 2024, down from 6.97% on May 8, 2024.
- Additionally, the US dollar index depreciated by 0.52% from the previous week, while the Indonesian Rupiah appreciated by 0.56% during the same period, closing at IDR 15,955 per US dollar on May 17, 2024. Meanwhile, Indonesia's 5-year Credit Default Swap (CDS) decreased by 2 basis points week-on-week, reaching 70 basis points on May 17, 2024.
- Government bonds volume was IDR26.82 trillion, and it was dominated by short term (< 5 years). It was dropped than the previous day transaction of IDR44.95 trillion. The volume lower than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR9.53 trilion dropped from the previous day's transaction which amount to IDR20.39 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR604.37 billion, dominated by short term (< 5 years). The transaction volume dropped compared to the previous day's volume of IDR1,173.83 billion. The volume lower compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR603.37 billion declined from the previous day's transaction of IDR1,166.83 billion.
- The JCI was up 0.97% from 7,247 to 7,317. Then Brent advanced from 81.31 to 81.61 USD per barrel, while WTI Cushing Crude Oil Spot price increased from 78.63 to 79.23 USD per barrel.
GLOBAL UPDATES
- China issued its first batch of ultra long bonds with auction for CNY40bn (USD5.5bn) 30-year bond. The average awarded yield was 2.57%, slightly higher than the median forecast of 2.55%. Demand exceeded 3.9 times of the amount offered, inline with 30-year tenor auction demand of about four times the CNY28bn offered on average. (Bloomberg)
DOMESTIC UPDATES
- The government will conduct an auction of State Sharia Securities (SBSN), also known as State Sukuk, on Monday, May 20, 2024. The series to be offered in this auction include SPNS18112024 (Reopening), SPNS02022025 (Reopening), PBS032 (Reopening), PBS030 (Reopening), PBS004 (Reopening), PBS039 (Reopening), and PBS038 (Reopening). For this auction, the government has set a target of IDR 10 trillion. The outcome of the Sharia Government Securities auction held on May 6 revealed a total bid of Rp16 trillion, representing a decrease compared to the previous auction conducted on April 23, 2024, which amounted to Rp16.27 trillion. Consequently, the total amount awarded in this auction was Rp7.03 trillion, falling short of the government's target of Rp10 trillion but surpassing the previous auction's figure of Rp5.08 trillion. The bid-to-cover ratio for this auction stood at 2.28x. BRI Danareksa Sekuritas projects an estimated range for the upcoming auction's total incoming bids between IDR10 trillion and IDR20 trillion, with an expected bid-to-cover ratio ranging from 1.00x – 2.00x. ( DJPPR)
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