HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.935% on May 20, 2024, vs 6.935% the day before. Meanwhile, the 10-year U.S. Treasury yield rose to 4.44%, from 4.42% the previous day.
- Government bonds volume was IDR64.43 trillion, and it was dominated by short term (< 5 years). It was was up than the previous day transaction of IDR26.82 trillion. The volume higher than its YTD average of IDR44.83 trillion. While the outright transaction reached IDR12.46 trilion increased from the previous day's transaction which amount to IDR9.53 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,045.45 billion, dominated by short term (< 5 years). The transaction volume was up compared to the previous day's volume of IDR604.37 billion. The volume lower compared to this year's average of IDR1,982.85 billion. Meanwhile, outright transaction recorded at IDR516.57 billion fell from the previous day's transaction of IDR603.37 billion.
- The Rupiah exchange rate against the US Dollar weakened by 0.13% to IDR15,975 from IDR15,955 while the JCI fell -0.69% from 7,317 to 7,267. Then Brent advanced from 81.61 to 82.14 USD per barrel, while WTI Cushing Crude Oil Spot price advanced from 79.23 to 80.06 USD per barrel.
GLOBAL UPDATES
- China’s PBoC kept the Loan Prima Rate 1Y and 5Y at the same level, following the unchanged rate of 2.5% for Medium-term Lending Facility. The 1Y LPR was kept at 3.45% and the 5Y at 3.95%, both figures matched the market expectations. (Trading Economics)
DOMESTIC UPDATES
- The results of the State Sharia Securities (SBSN) auction on May 20 indicated a total bid submission of IDR 16.50 trillion, surpassing the previous auction on May 6, 2024, which received IDR 16 trillion. The series that received the highest bids was PBS038, with a yield range of 7.00% - 7.75%, attracting bids totaling IDR 4.8 trillion. Following this, PBS032 and SPNS02022025 garnered bids of IDR 2.15 trillion and IDR 0.65 trillion, respectively. The yield range for PBS032 was 6.75% - 7.00%, while SPNS02022025 had a yield range of 6.75% - 6.90%. Consequently, the awarded nominal value in this auction was IDR 8.10 trillion, which is below the government's target of IDR 10 trillion but higher than the previous auction's IDR 7.03 trillion. This results in a bid-to-cover ratio of 2.03x for the current auction. ( DJPPR)
- Current Account deficit widened to USD2.2bn (-0.64% of GDP) in 1Q24 The deficit reached USD2.2bn (0.64% of GDP), higher than the 4Q23's USD1.1bn (0.3% of GDP) and 1Q23's USD2.8bn (+0.8% of GDP). Compared to previous figures, the larger deficit can be attributed to a significant decrease in the goods trade balance surplus, which stands at USD9.8bn in 1Q24, down from USD11.4bn in 4Q23 and USD14.7bn in 1Q23.
- (BPS)
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