Global Market Update

• On August 6th, 2024, the yield on US 10-year Government Bonds rebounded by 10.35 basis points after hitting its 6-month low, reaching a level of 3.8919%.
• China's trade surplus grew to USD 84.65 billion in July 2024 from USD 80.22 billion last year but was below the expected USD 99 billion. Exports increased by 7.0%, less than the 9.7% forecast and slower than June's 8.6%. Imports rose by 7.2%, rebounding from a 2.3% drop last month and surpassing the 3.5% prediction, thanks to government measures to boost local demand.
• New Zealand's unemployment rate rose to 4.6% in the three months to June 2024, up from 4.4% the previous quarter, the highest since early 2021 but below the expected 4.7%.

  
            Sources: General Administration of Customs – China, Statistics New Zealand, Trading Economics, and Bloomberg.


Domestic Market Update

• On August 7th, 2024, the yield on the 10-year Indonesian Government Bonds continued its daily decrease, dropping 0.35 basis points to a level of 6.8743%.
• Indonesia's foreign exchange reserves in July 2024 were $145.4 billion, up from $140.2 billion in June 2024. This increase was mainly due to the issuance of government global sukuk and tax and service revenues.
• Moody's has affirmed PLN (Persero) (P.T.)'s Baa2 issuer and senior unsecured ratings and upgraded its Baseline Credit Assessment (BCA) to ba2 from ba3. The (P)Baa2 rating on PLN's senior unsecured MTN program and the Baa2 rating on the bond issued by Majapahit Holding BV, guaranteed by PLN, have also been affirmed. All ratings maintain a stable outlook. 

           Sources: Moody’s Ratings, Bloomberg and PHEI.

Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.8576% - 6.9961% for tomorrow. Recommendations: FR0102, FR0081, FR0100, FR0091, and FR0097.

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