HIGHLIGHTS
- Yield of 10-year Indonesia Government Bonds is 6.594% on December 05, 2023, vs 6.586% the day before. While at the same time the 10-year UST fell 10 bps to 4.18%, from 4.28% the previous day.
- Government bonds volume was IDR40.24 trillion, and it was dominated by short term (< 5 years). It was dropped than the previous day transaction of IDR50.76 trillion. The volume lower than its YTD average of IDR44.97 trillion. While the outright transaction reached IDR12.90 trilion fell from the previous day's transaction which amount to IDR15.01 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR2,046.09 billion, dominated by short term (< 5 years). The transaction volume fell compared to the previous day's volume of IDR2,854.94 billion. The volume higher compared to this year's average of IDR1,964.14 billion. Meanwhile, outright transaction recorded at IDR2,046.09 billion fell from the previous day's transaction of IDR2,854.94 billion.
- The Rupiah exchange rate against the US Dollar by 0.32% weakened to IDR15,505 from IDR15,455 while the JCI was up 0.10% from 7,094 to 7,101. Then Brent declined from 81.01 to 78.21 USD per barrel, while WTI Cushing Crude Oil Spot price declined from 74.07 to 73.04 USD per barrel.
GLOBAL UPDATES
- Moody’s Investors Service cut its outlook for Chinese sovereign bonds to negative, underscoring deepening global concerns about the level of debt in the world’s second-largest economy. Moody’s lowered its outlook to negative from stable while retaining a long-term rating of A1 on the nation’s sovereign bonds, according to a statement. China’s usage of fiscal stimulus to support local governments and its spiraling property downturn is posing risks to the nation’s economy, the grader said. (Bloomberg)
- The Caixin China General Composite PMI rose to 51.6 in November 2023 from 50.0 in the prior month. This was the 11th straight month of growth in private sector activity and the steepest pace since August, as factory activity unexpectedly expanded. On inflation, input prices rose the least since July, with prices charged increasing slightly. (Trading Economics)
- US ISM Service PMI rose to 52.7 in November from 51.8, which was a 5-month low. Business activity increased, although new orders remained flat and a gauge of input inflation dipped as the lagged effects of higher interest rates start to have a greater impact. (Reuters)
- The number of job openings in the US decreased by 617,000 from the previous month to 8.733 million in October 2023, marking the lowest level since March 2021 and falling below the market consensus of 9.3 million. (Trading Economics)
DOMESTIC UPDATES
- The results of the auction of State Sharia Securities on December 5, 2023 showed a total incoming bid of IDR19.75 trillion, higher than the previous auction on November 21, 2023 of IDR18.59 trillion. The series that has the largest incoming bid is SPNS04062024 with a yield range of 6.25% - 6.35%. The incoming bid reached IDR6.06 trillion, followed by PBS003 and PBS036 which attracted bids of IDR4.60 trillion and IDR3.02 trillion respectively. with a yield range of 6.58% - 6.90% for the PBS003 series and the PBS036 series has a yield range of 6.57% - 6.83%. Thus, the nominal won in this auction amounted to IDR9.14 trillion, higher than the government's target of IDR9 trillion. And lower than the previous auction of IDR9.73 trillion. Thus, the bid-to-cover ratio of this auction is 2.16x.
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