HIGHLIGHTS
- As of September 27, 2024, the 10-year US Treasury yield increased by 2 basis points (bps) to 3.75%, while the 2-year US Treasury yield remained stable at 3.55%. Similarly, the yield on the 10-year Indonesian Government Bond (INDOGB) rose 2 bps to 6.46%, up from 6.44% on September 20, 2024.
- The US Dollar Index fell by 0.07% week-on-week, while the Rupiah appreciated by 0.17%, closing at IDR 15,125 per US Dollar on September 27, 2024. Indonesia’s 5-year Credit Default Swap (CDS) remained steady at 68 bps during the same period.
- The volume of government bonds reached IDR 50.79 trillion, primarily driven by short-term maturities (under 5 years), reflecting an increase from the previous day's volume of IDR 39.55 trillion and surpassing the year-to-date average of IDR 45.77 trillion. Outright transactions amounted to IDR 22.01 trillion, up from IDR 20.74 trillion the previous day.
- In contrast, total corporate bond volume was recorded at IDR 884 billion, also dominated by short-term maturities (under 5 years). This represents a decline from the previous day's volume of IDR 1,565 billion and is below this year's average of IDR 1,886 billion. Outright transactions for corporate bonds totaled IDR 868 billion, down from IDR 1,563 billion the prior day.
- The Jakarta Composite Index (JCI) fell by 0.61%, decreasing to 7,697 from 7,745. Additionally, Brent crude oil prices dropped from USD 75.32 to USD 72.49 per barrel, while WTI Cushing Crude Oil Spot prices fell from USD 70.32 to USD 67.67 per barrel.
GLOBAL UPDATES
- US PCE and Core PCE rose just by 0.1% m-m in Aug-24. On a yearly basis, PCE rose by 2.2% y-y, marking a significant disinflation progress. The figure perceived as the justification for Fed's 50bps rate cut in its most recent meeting. (Bloomberg)
- India loosened restrictions on some rice exports, a move that may ease global prices and signal a shift in domestic agricultural policies following the recent national elections. The government cut the tax on parboiled rice shipments to 10% from 20%, according to a notification from the finance ministry. Rice shipments slumped 25% in the April-July period from a year ago. (Bloomberg)
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