HIGHLIGHTS
- The yield on the US 10-year Treasury increased by 4 basis points (bps) to 4.46% on May 24, 2024, up from 4.42% on May 17, 2024. Similarly, the 2-year UST yield rose by 10 bps over the week, reaching 4.93% on May 24, 2024. Conversely, the yield on the 10-year Indonesian Government Bonds (INDOGB) decreased by 7 bps to 6.91% on May 22, 2024, down from 6.98% on May 15, 2024.
- The dollar index appreciated by 0.37% from the previous week, while the Indonesian Rupiah strengthened by 0.22%, closing at IDR 15,993 per US dollar on May 22, 2024. Indonesia’s 5-year Credit Default Swap (CDS) remained stable week-on-week at 70 bps as of May 22, 2024.
- The volume of government bonds traded reached IDR 47.68 trillion, dominated by short-term bonds (< 5 years). This was an increase from the previous day's transaction volume of IDR 32.57 trillion and higher than the year-to-date (YTD) average of IDR 44.83 trillion. However, outright transactions fell to IDR 11.50 trillion from the previous day's IDR 11.75 trillion.
- The total volume of corporate bonds traded was IDR 1,674.29 billion, also dominated by short-term bonds (< 5 years). This was an increase from the previous day's volume of IDR 1,276.16 billion but lower than the YTD average of IDR 1,982.85 billion. Outright transactions for corporate bonds rose to IDR 1,674.19 billion from the previous day's IDR 1,396.16 billion.
- The Jakarta Composite Index (JCI) increased by 0.51%, to 7,222 to 7,182. Meanwhile, Brent crude oil prices fell from USD 82.42 to USD 81.53 per barrel, and the WTI Cushing Crude Oil Spot price declined from USD 79.80 to USD 79.26 per barrel.
GLOBAL UPDATES
- China’s Foreign Investment extended the decline streak to four months as new actually utilized foreign investment amounted to only CNY58.5bn (USD8.1bn) in Apr-24, down 30% y-y and the 2nd lowest since 2019. (Bloomberg)
- Manufacturing PMI May-24 (Flash). US Manufacturing expands with PMI of 50.9 (vs. 50). UK Manufacturing expands with PMI of 51.3 from April’s contraction of 49.1. EU Manufacturing contraction slows as PMI improves to 47.4 (vs. 45.7). (Trading Economics)
DOMESTIC UPDATES
- Bank Indonesia maintained the BI rate at 6.25% as IDR stabilized below IDR16,000 and inflation was only 3% in Apr-24, within the target range. (Bank Indonesia)
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