HIGHLIGHTS
- On October 16, 2024, the yield on 10-year Indonesian Government Bonds decreased to 6.676%, compared to 6.696% the previous day. Meanwhile, the UST 10yr yield fell to 4.02%, from 4.03% the previous day.
- The total volume of government bonds traded reached IDR 47.86 trillion, primarily in the medium-term range (5-15 years), reflecting a decrease from the prior day's transactions of IDR 51.27 trillion. However, this volume surpassed the year-to-date average of IDR 45.86 trillion. Outright transactions amounted to IDR 17.26 trillion, down from IDR 35.85 trillion the day before.
- In the corporate bond market, total volume reached IDR 2,257 billion, with short-term bonds (less than 5 years) dominating the transactions. This figure marked an increase from the previous day's volume of IDR 1,483 billion and exceeded this year’s average of IDR 1,921 billion. The outright transaction volume was also recorded at IDR 2,257 billion, up from IDR 1,330 billion the day prior.
- The Rupiah strengthened by 0.43% against the US Dollar, moving from IDR 15,580 to IDR 15,513. Meanwhile, the Jakarta Composite Index (JCI) rose by 0.29%, from 7,627 to 7,649. In the commodities market, Brent crude oil prices fell from USD 77.93 to USD 73.66 per barrel, while WTI Cushing crude oil prices dropped from USD 73.83 to USD 70.58 per barrel.
DOMESTIC UPDATES
- Bank Indonesia (BI) maintained its policy rate at 6.00% in Oct-24 , following last month’s first rate cut in four years, aligning with our expectation. To support economic growth, BI plans to expand its macroprudential incentives to include more labor-intensive industries.
- BI may consider another rate cut in November or December, with a higher likelihood in December, in our view. However, a quicker move could happen if the U.S. Federal Reserve cuts its policy rate in November, in line with BI's expectations, and if the government continues promoting positive catalysts through its program in 2025, further boosting inflows and supporting IDR. (Bank Indonesia, BRIDS)
To see the full version of this daily update, please click here
