HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.586% on December 04, 2023, vs 6.619% the day before. While at the same time the 10-year UST yield rose to 4.28%, from 4.22% the previous day.
- Government bonds volume was IDR50.76 trillion, and it was dominated by short term (< 5 years). It was increased than the previous day transaction of IDR33.48 trillion. The volume higher than its YTD average of IDR44.99 trillion. While the outright transaction reached IDR15.01 trilion advanced from the previous day's transaction which amount to IDR10.63 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR2,854.94 billion, dominated by short term (< 5 years). The transaction volume advanced compared to the previous day's volume of IDR1,237.49 billion. The volume higher compared to this year's average of IDR1,963.77 billion. Meanwhile, outright transaction recorded at IDR2,854.94 billion increased from the previous day's transaction of IDR1,220.69 billion.
- The Rupiah exchange rate against the US Dollar by 0.19% strengthened to IDR15,455 from IDR15,485 while the JCI increased 0.48% from 7,060 to 7,094. Then Brent was up from 80.60 to 81.01 USD per barrel, while WTI Cushing Crude Oil Spot price dropped from 75.96 to 74.07 USD per barrel.
GLOBAL UPDATES
1. Factory orders in the US sank 3.6% m-m in October 2023, following a downwardly revised 2.3% rise in September, and worse than market forecasts of a 2.8% fall. It is the biggest decrease since April 2020, in a sign the industrial sector is suffering from high interest rates and inflation. (Trading Economics)
DOMESTIC UPDATES
- The government will conduct a State Sharia Securities (SBSN) auction on 5 Dec 2023, offering the PBS038 series and other series with a target of IDR9tr. In the latest auction (21 Nov), total incoming bids of Rp18.59tr surpassed the 7 Nov auction’s Rp15.87tr, signifying rising appetite from investors. The PBS036 series attracted the most bids, reaching Rp5.52tr, followed by SPNS07052024 and PBSG001 with bids of Rp5.26tr and Rp2.37tr, respectively. The nominal winning bids in this auction reached Rp9.79tr, or higher than the government's target of Rp9tr, resulting in a bid-to-cover ratio of 1.91x. Based on current macroeconomic conditions, BRI Danareksa Sekuritas estimates the total incoming bid for this auction to be between IDR17 trillion and IDR27 trillion, with a bid-to-cover ratio between 1.88x and 3.00x.
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