HIGHLIGHTS
- Yield on Government Bonds: The yield on 10-year Indonesian Government Bonds increased to 6.474% today, up from 6.438% the previous day.
- Government Bonds Trading Volume: The trading volume for government bonds totaled IDR 36.35 trillion, predominantly in the medium-term category (5-15 years). This represents a decrease from IDR 48.11 trillion the prior day and is below the year-to-date average of IDR 45.72 trillion. Outright transactions reached IDR 18.45 trillion, down from IDR 31.02 trillion on the previous day.
- Corporate Bonds Trading Volume: The total volume of corporate bonds was recorded at IDR 1,460 billion, with a focus on short-term bonds (less than 5 years). This figure reflects an increase from IDR 884 billion the previous day but is still below this year’s average of IDR 1,893 billion. Outright transactions for corporate bonds also rose to IDR 1,460 billion, compared to IDR 874 billion the day before.
- Currency and Market Movements: The Rupiah depreciated by 0.33% against the US Dollar, settling at IDR 15,200, down from IDR 15,150. Conversely, the Jakarta Composite Index (JCI) saw a rise of 0.42%, climbing from 7,743 to 7,776. In commodity markets, Brent crude oil prices fell from USD 76.52 to USD 76.08 per barrel, while the WTI Cushing Crude Oil Spot price decreased slightly from USD 71.95 to USD 71.92 per barrel.
GLOBAL UPDATES
- Global Manufacturing deteriorates in Sep-24, according to flash estimate of September's Manufacturing PMI in several advanced countries. US Manufacturing PMI fell to 47.0 from 47.9 in August due to the sharpest declines in new orders for goods since December of 2022. Eurozone Manufacturing PMI fell to 44.8 from Aug's 45.8 with output fell the most in nine months. UK Manufacturing expanding slower with a PMI of 51.5 vs. Aug's 52.5 as new export orders remained relatively subdued due to weak EU sales. (Trading Economics)
DOMESTIC UPDATES
- The government will conduct an auction of State Sharia Securities (SBSN), also known as Sukuk Negara, on Tuesday, September 24, 2024. The series to be offered in this auction include SPNS01042025 (Reopening), SPNS09062025 (Reopening), PBS032 (Reopening), PBS030 (Reopening), PBS029 (Reopening), PBS004 (Reopening), and PBS038 (Reopening). The government aims to raise a target of IDR 8 trillion in this auction.following series: SPNS03032025 (Reopening), SPNS29052025 (Reopening), PBS032 (Reopening), PBS030 (Reopening), PBSG001 (Reopening), PBS004 (Reopening), and PBS038 (Reopening). The government aims to raise IDR 8 trillion through this auction. On September 10, the auction results for the Government Sharia Securities (Surat Berharga Syariah Negara) indicated that the total bids received amounted to IDR 21.89 trillion, which is lower compared to the previous auction on August 27, 2024, where bids totaled IDR 23.89 trillion. In total, the nominal value awarded in this auction was IDR 8 trillion, matching the government's target of IDR 8 trillion. Consequently, the bid-to-cover ratio for this auction was 2.66x. BRI Danareksa Sekuritas projects an estimated range for the upcoming auction's total incoming bids between IDR15 trillion and IDR25 trillion, with an expected bid-to-cover ratio ranging from 1.88x – 3.13x. (DJPPR, BRIDS Estimated)
- Fiscal Deficit in 8M24 widened to IDR153.7tn or 0.7% of GDP with Primary Balance stood at IDR161.8tn. Revenue reached IDR1,777tn in 8M24 or -2.5% y-y. Tax revenue reached IDR1,196.6tn, contracted by 4.0% y-y (vs. -5.7% y-y in 7M24). Customs increased by 6.8% y-y to IDR183.2tn. Spending reached IDR1930.7tn in 8M24 or 15.3% y-y. Central gov't (C. gov't) spending surged 16.9% y-y to IDR1,368.5tn. Regional transfer grew 11.6% y-y to IDR562.1tn (vs. 7M24: IDR468tn or 6.1% y-y). Transfer for village fund grew 14.1% y-y with some villages have received 100% of their funds. (MoF)
- Indonesia Money Supply grew 7.3% y-y in Aug-24, slightly decelerated from 7.6% in Jul-24. The deceleration came as Quasi Money growth slowed to 5.6% y-y from 7.5%. Meanwhile, the Narrow Money (M1), which contribute 55% to the overall M2, accelerated to 7.0% y-y from 6.3%. (Bank Indonesia)
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