Global Market Update

• On July 5th, 2024, the yield on US 10-year government bonds closed at 4.3587%, down by 8.03-bps compared to the previous day, following the Independence Day holiday.
• In May 2024, Germany's trade surplus increased to EUR 24.9 billion, up from EUR 22.2 billion in April. This was driven by a smaller decline in exports compared to imports. Exports fell to EUR 131.6 billion, while imports dropped to EUR 106.7 billion. For the first five months of 2024, Germany recorded a total trade surplus of EUR 116.4 billion.
• In June 2024, loans in Japan grew by 3.2% compared to the previous year, totaling 622.7 trillion yen. Major and regional banks led the increase in lending, with "shinkin" banks also contributing to the growth, though to a lesser extent.

          Sources: Bloomberg, Federal Statistical Office – German, Bank of Japan, Trading Economics and Binaartha.

            
Domestic Market Update

• On July 8th , 2024, the yield curve for the 10-year Indonesia Government Bond closed at a level of 7.0484%, marking a slight decrease of 1.74-bps compared to previous close.
• The Consumer Confidence Survey conducted by Bank Indonesia in June 2024 suggests that consumer faith in the economic outlook remains strong. This is evident from the Consumer Confidence Index (CCI) for June 2024, which stands at 123.3, indicating a level of optimism (>100).
• Upon the full repayment of PT Barito Pacific Tbk’s (BRPT)  Continuous Bond II Phase I 2021 Series A on July 8, 2024, PEFINDO has withdrawn its rating of the debt instrument. The latest rating, idA+, was assigned on November 1, 2023.

           Sources: Bank Indonesia, PEFINDO, PHEI, and Binaartha.

Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6045% - 7.2997% for tomorrow. Recommendations: FR0102, FR0089, FR0062, FR093, and FR0088.

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