Global Market Update

• On August 9th, 2024, the yield on US 10-year Government Bonds decreased by 4.79 basis points to a level of 3.9398%.
• In July 2024, Germany's wholesale prices fell by 0.1% compared to a year ago, a slowdown from the previous month's 0.6% drop. This was the 15th month in a row of decreasing prices, but the smallest drop yet. Lower costs for chemical products, iron and steel, live animals, and computers contributed to this trend.
• In Q2-2024, construction activity in Malaysia grew by 20.2% YoY, up from 14.2% in Q1. This marked the ninth consecutive period of growth and the strongest yearly increase since Q3-2022. All sub-sectors saw strong output.

  
            Sources: Federal Statistical Office-German, Department of Statistics – Malaysia, and Bloomberg, Trading Economics.

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Domestic Market Update

• On August 12th, 2024, the yield on the 10-year Indonesian Government Bonds increased by 1.01-bps to a level of 6.8450%.
• PEFINDO has affirmed PT Bank Muamalat Indonesia Tbk's idA+ rating with a stable outlook, along with an idA+(sy) rating for its Sukuk Mudharabah 2021. The rating reflects strong support from Badan Pengelola Keuangan Haji (BPKH), a solid market position in sharia banking, and strong capitalization. However, it is limited by weak asset quality and profitability.
• According to information from KSEI, PT Sinar Mas Agro Resources & Technology Tbk (SMAR) will conduct a corporate action by paying the 13th coupon of OBLIGASI BERKELANJUTAN III SMART TAHAP I TAHUN 2021 SERI C, with a 9.25% annual interest rate, on September 10th, 2024. This bond will mature on June 10th, 2026.

           Sources: PEFINDO, KSEI, Bloomberg and PHEI.

Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.7620% - 6.8986% for tomorrow. Recommendations: FR0102, FR0081, FR0100, FR0091, and FR0097.

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