HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 7.218% on April 29, 2024, vs 7.181% the day before.
- Government bonds volume was IDR43.57 trillion, and it was dominated by short term (< 5 years). It was increased than the previous day transaction of IDR41.17 trillion. The volume lower than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR12.98 trilion dropped from the previous day's transaction which amount to IDR22.56 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,625.98 billion, dominated by short term (< 5 years). The transaction volume declined compared to the previous day's volume of IDR2,166.93 billion. The volume lower compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR1,586.68 billion declined from the previous day's transaction of IDR2,166.93 billion.
- The Rupiah exchange rate against the US Dollar weakened by 0.28% to IDR16,255 from IDR16,210 while the JCI was up 1.70% from 7,036 to 7,156. Then Brent increased from 88.18 to 89.40 USD per barrel, while WTI Cushing Crude Oil Spot price fell from 85.17 to 83.85 USD per barrel.
GLOBAL UPDATES
- US Treasury announced an increased borrowing in 2Q24. They expects to borrow USD243bn (vs. USD202bn in January’s estimates) in privately-held net marketable debt to end the quarter with USD750bn cash balance. In 1Q24, US Treasury borrowed USD748bn in privately-held net marketable debt, USD12bn lower than the estimated due to higher cash receipts and lower fiscal expenses. (US Treasury)
DOMESTIC UPDATES
- On April 30, 2024, the government will host a bond auction featuring various series, including SPN03240801 and SPN12250502 (both new issuances), along with FR0101, FR0100, FR0098, FR0097, and FR0102. The target fund to be raised is Rp23 trillion, reduced from the previous goal of Rp24 trillion, with a maximum target set at Rp34.50 trillion. The results of the March 26 auction showed bids totaling Rp32.34 trillion, down from Rp58.94 trillion in the preceding auction on March 13, 2024. The total awarded amount in the March 26 auction was Rp22.60 trillion, falling short of both the government's target and the previous auction's results. Consequently, the bid-to-cover ratio for this auction was 1.43x. BRI Danareksa Sekuritas forecasts an estimated bid range of IDR30 trillion to IDR40 trillion for the upcoming auction, with an anticipated bid-to-cover ratio ranging from 1.30x to 1.73x.
- Direct investment realization reached IDR401.5tn in 1Q24, marking a notable increase of 22.1% y-y and 9.8% q-q. This achievement accounts for 32.4% of FY24 target of IDR1,239.3tn. Direct investment in the downstream sector amounted to IDR75.8tn. Foreign Direct Investment (FDI) maintained its strength despite election and global uncertainty, registering a robust growth of 15.5% y-y to IDR204.4tn. Investment distribution in 1Q24 was evenly balanced between Java and Ex-Java regions. In terms of sectors, the base metal industry remained dominant with IDR48.1tn investment. (Ministry of Investment)
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