HIGHLIGHTS
- On October 14, 2024, the yield on 10-year Indonesian Government Bonds was recorded at 6.681%, a slight decrease from 6.683% the previous day.
- The volume of government bonds traded reached IDR 37.13 trillion, primarily in short-term maturities (less than 5 years), marking an increase from the previous day's transactions of IDR 36.05 trillion. However, this volume remains below the year-to-date average of IDR 45.82 trillion. The outright transactions totaled IDR 11.56 trillion, down from IDR 13.57 trillion the day before.
- In the corporate bond market, the total volume traded was IDR 2.219 trillion, also dominated by short-term maturities (less than 5 years). This volume reflects a significant increase from the previous day's total of IDR 1.218 trillion and is above this year’s average of IDR 1.922 trillion. Outright transactions in this segment reached IDR 1.968 trillion, an increase from IDR 1.218 trillion the prior day.
- The Rupiah strengthened by 0.13% against the US Dollar, trading at IDR 15,560 compared to IDR 15,580 previously. The Jakarta Composite Index (JCI) rose by 0.52%, from 7,521 to 7,560. Additionally, Brent crude oil prices increased from USD 79.23 to USD 80.05 per barrel, while the WTI Cushing Crude Oil Spot price declined from USD 75.85 to USD 75.56 per barrel.
GLOBAL UPDATES
- China's export growth rose 2.4% y-y in Sep-24, way below the consensus of 6% growth, despite the base number in Sep-23 was contraction of 8.5% y-y. Import grew by 0.3% y-y, also lower than the consensus of 0.9%. The overall trade balance surplus fell to USD81.7bn, a five-month low. (Bloomberg)
DOMESTIC UPDATES
- Trade Balance in Sep-24 will be announced today by BPS at 11am. We expect the surplus will continue at USD2.8bn (vs. Cons: USD2.7bn), slightly lower than Aug's USD2.9bn. (BRIDS Economic Research)
- The government will conduct an auction of Government Securities (SUN) on Tuesday, October 15, 2024. The series that will be offered at this auction are SPN12250116 (Reopening), SPN12251002 (Reopening), FR0104 (Reopening), FR0103, (Reopening), FR0098 (Reopening), FR0097 (Reopening) and FR0102 (Reopening). Then in this auction the Government provided a target of IDR22 trillion, with a maximum target of IDR33 trillion. The results of the Government Securities auction held on October 1 revealed a total incoming bid of IDR 46.65 trillion, an increase compared to the previous auction on September 17, which recorded IDR 63.70 trillion. The auction resulted in a nominal allocation of IDR 24 trillion, surpassing the government’s target of IDR 22 trillion. Consequently, the bid-to-cover ratio for this auction stood at 1.94x. BRI Danareksa Sekuritas estimates that total incoming bids for the upcoming auction could range between IDR 45 trillion and IDR 55 trillion, with an expected bid-to-cover ratio between 2.05x and 2.50x. (Sources: DJPPR, BRIDS Estimated)
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