Global Market Update

• On July 25th, 2024, the yield on US 10-year government bonds closed at 4.2407%, down by 4.31-bps compared to the previous day
• On July 26th, 2024, the Monetary Authority of Singapore kept its monetary policy unchanged, maintaining the current rate of appreciation for the S$NEER policy band. This helps manage inflation. The economy is expected to improve, with core inflation likely dropping to around 2% in 2025.
• In June 2024, the US Personal Consumption Expenditure (PCE) price index is expected to rise by 0.1% from May, with the core index also increasing by 0.1%. 

     
            Sources: Monetary Authority of Singapore, U.S. Bureau of Economic Analysis, and Bloomberg.


            
Domestic Market Update

• On July 26th, 2024, the yield on the 10-year Indonesian government bond closed at 6.9988%, a slight decrease of 2.22 basis points from the previous day. Meanwhile, the ICBI reached its highest level in six months at 383.3348.
• Fitch Ratings has affirmed PT Pan Brothers Tbk’s (PBRX:IJ) 'RD' Long-Term Issuer Default Rating and the 'C' rating on its USD171 million notes issued by its subsidiary, PB International B.V. The company is extending its court restructuring to handle creditor claims but remains operational and isn’t in bankruptcy.
• Fitch Ratings Indonesia has affirmed PT Bussan Auto Finance (BAF) with its highest National Long-Term Rating of 'AAA(idn)' and a Stable Outlook. This rating reflects BAF's strong creditworthiness and minimal risk of default. Additionally, the ratings for the company’s senior rupiah debt have also been affirmed at 'AAA(idn)’.

           Sources: Fitch Ratings and PHEI.

Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.9039% - 7.0434% for next Monday. Recommendations: FR0102, FR0081, FR0100, FR0091, and FR0097.

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