Global Market Update

• On July 19th, 2024, the yield on US 10-year government bonds closed at 4.2389%, up by 3.68-bps compared to the previous day.
• In June 2024, Hong Kong's annual inflation rate was 1.5%, the highest since March. Prices rose faster for alcoholic drinks & tobacco, increasing by 22% compared to 20.1% in May. 
• In July, the PBOC cut key lending rates to historic lows to support the economy. The one-year loan prime rate (LPR) for most loans dropped to 3.35%, and the five-year rate for mortgages fell to 3.85%. Additionally, China's short-term interest rate, the seven-day reverse repo rate, was reduced to 1.7% from 1.8%, the first cut in nearly a year, aimed at optimizing financial operations and boosting economic support.

          Sources:People’s Bank of China, Census and Statistics Department-Hong Kong, and Bloomberg.

            
Domestic Market Update

• On July 22nd , 2024, the yield curve for the 10-year Indonesia Government Bond closed at a level of 7.0084%, marking a slight increase of 2.04-bps compared to Friday.
• In June 2024, the broad money supply (M2) increased to Rp9,026.2 trillion, up by 7.8% compared to last year, surpassing the 7.6% growth recorded in the previous month. The growth of M2 was mainly influenced by the expansion in credit distribution, which grew by 11.5% year-on-year in June 2024, showing stability compared to 11.4% growth in the previous month.
• PT Mandiri Tunas Finance (MTF) will distribute the 13th quarterly coupon payment of 7.65% p.a for its "OBLIGASI BERKELANJUTAN V MANDIRI TUNAS FINANCE TAHAP II TAHUN 2021 SERI B" on August 20th, 2024. The recording date is set for August 14th, 2024, according to information from KSEI.

         
           Sources:  PHEI, KSEI, and Bank Indonesia.

Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.9379% - 7.0076 % for next Monday. Recommendations: FR0102, FR0081, FR00100, FR0091, and FR0097.

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