HIGHLIGHTS
- Yield of 10-year Government Bonds is 6.653% on November 21, 2023, vs 6.659% the day before.
- Government bonds volume was IDR38.03 trillion, and it was dominated by short term (< 5 years). It was advanced than the previous day transaction of IDR29.52 trillion. The volume lower than its YTD average of IDR45.11 trillion. while the outright transaction reached IDR19.01 trilion was up from the previous day's transaction which amount to IDR11.41 trilion.
- Meanwhile, the total volume of corporate bonds was recorded at IDR1,371.58 billion, dominated by short term (< 5 years). The transaction volume fell compared to the previous day's volume of IDR2,540.85 billion. The volume lower compared to this year's average of IDR1,964.49 billion. Meanwhile, outright transaction recorded at IDR1,371.58 billion declined from the previous day's transaction of IDR2,523.85 billion.
- The Rupiah exchange rate against the US Dollar by 0.03% strengthened to IDR15,440 from IDR15,445 while the JCI dropped -0.47% from 6,995 to 6,962. Then Brent was up from 80.04 to 83.18 USD per barrel, while WTI Cushing Crude Oil Spot price was up from 75.89 to 77.60 USD per barrel.
GLOBAL UPDATES
- The US Existing Home sales dropped to 3.79mn in October 2023, the lowest level in 13 years. Higher mortgage rates, combined with lack of housing inventory continue to weigh on the US housing market. (Trading Economics)
- Federal Reserve's latest FOMC Minutes shows that the members remains cautiously hawkish, stating that monetary policy be kept sufficiently restrictive but want to proceed carefully. The FOMC members also expect the economy to slow in 4Q after 4.9% increase in 3Q due to the current monetary policy is already putting downward pressure to the economy. (CNBC)
DOMESTIC UPDATES
- The results of the auction of Government Sharia Securities on November 21, 2023, showed a total incoming bid of IDR 18.59 trillion, higher than the previous auction on November 7, 2023, of IDR 15.87 trillion. The series that has the largest incoming bid is PBS036 with a yield range of 6.59% - 7.00%, the incoming bid reached IDR 5.52 trillion, followed by SPNS07052024 and PBSG001 which attracted bids of IDR 5.26 trillion and IDR 2.37 trillion, respectively. with a yield range of 6.25% - 6.69% for the SPNS07052024 series and the PBSG001 series has a yield range of 6.60% - 7.00%. Thus, the nominal won in this auction amounted to IDR 9.79 trillion, higher than the government's target of IDR 9 trillion. However, it is lower than the previous auction of IDR2.24 trillion. thus, the bid-to-cover ratio of this auction is 1.91x.
- 31 provinces announced their Provincial Minimum Wage (UMP) yesterday. The highest growth came from North Maluku with a 7.5% increase, followed by Yogyakarta (7.3%) and East Java (6.1%). Meanwhile, the lowest growth is seen in Gorontalo with 1.2% UMP growth. The average of UMP growth, weighted using Regional GDP, is at 3.9%, down significantly from 2023 UMP growth of 7%. (Bisnis, Kontan, BRI Danareksa)
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