HIGHLIGHTS
- The yield on the 10-year US Treasury rose by 10 basis points (bps) over the week, reaching 3.91% as of August 30, 2024. Similarly, the 2-year US Treasury yield edged up by 1 bps to match the 10-year yield at 3.91%. In contrast, the yield on the 10-year Indonesian Government Bond (INDOGB) slightly decreased by 1 bps, closing at 6.63% on August 30, 2024, down from 6.64% on August 23, 2024.
- The US Dollar Index appreciated by 0.69% over the previous week, while the Rupiah gained 0.23% against the US Dollar, ending at IDR 15,455 per US Dollar on August 30, 2024. Meanwhile, Indonesia's 5-year Credit Default Swap (CDS) rate declined by 1 bps on a weekly basis, settling at 67 bps as of August 30, 2024.
- The volume of government bonds traded reached IDR 36.92 trillion, primarily driven by short-term maturities (<5 years). This represents an increase from the previous day's transaction volume of IDR 36.78 trillion, although it remains below the year-to-date (YTD) average of IDR 44.83 trillion. Outright transactions also saw an uptick, rising to IDR 19.29 trillion from IDR 18.44 trillion the previous day.
- In the corporate bond market, the total volume traded amounted to IDR 1,051 billion, with short-term bonds (<5 years) dominating activity. This marks an improvement over the previous day's volume of IDR 669 billion but remains below the year's average of IDR 1,983 billion. Outright transactions also advanced, recording IDR 1,051 billion, up from IDR 658 billion the day before.
- The Jakarta Composite Index (JCI) increased by 0.57%, moving from 7,628 to 7,671. Additionally, Brent crude prices rose from USD 81.08 to USD 82.43 per barrel, while the WTI Cushing Crude Oil Spot price climbed from USD 74.52 to USD 75.91 per barrel.
GLOBAL UPDATES
- US PCE rose 2.5% y-y in July-24, unchanged from Jun-24. Core PCE rose 2.6% for the third straight month. The year-ahead inflation expectations were revised down to 2.8% in Aug-24, the lowest since Dec-20, compared to an earlier estimate of 2.9% and easing from 2.9% in Jul-24. (Trading Economics)
- Euro inflation dropped to 2.2% in Aug-24 from 2.6% in Jul-24, according to initial estimate. Core inflation was unchanged at 2.8%. (Trading Economics)
DOMESTIC UPDATES
- Pertalite consumption reach 18.8mn kl y-t-d as of 16 August or 59.5% of this year quota. During the same period, Solar consumption reached 10.7mn kl or 59.8% of the quota. (Bisnis)
- Aug’s inflation will be announced today at 11am. We expect headline inflation to reach 2.15% on the back of stable prices of major cooking ingredients. For core inflation, we expect an acceleration to 2.05%. (BRIDS)
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