Global Market Update

• On June 20, 2024, the yield on the US 10-year Government Bond closed at 4.2594%, marking an increase of 6-bps after reopening following the Juneteenth holiday.
  
• In May 2024, Japan's annual inflation rate rose to 2.8% from 2.5% in April, marking the highest level since February. This was driven by a sharp increase in electricity prices as subsidies were fully phased out (up 14.7%, compared to a decrease of 1.1% in April), reversing a decline seen over the past 15 months.
  
• Retail sales in the UK surged by 2.9% month-on-month in May 2024, bouncing back from a revised 1.8% drop in April and surpassing expectations for a 1.5% increase. This marks the largest increase in four months, driven by a 3.5% rise in sales at non-food stores, the highest since April 2021, following a 3% decline in April.
  

          Sources: Bloomberg, Statistics Bureau of Japan, Office for National Statistics – UK, Trading Economics and Binaartha.


            
Domestic Market Update

• On June 21st , 2024, the yield curve for the 10-year Indonesia Government Bond closed at a level of 7.1098%, marking a slight increase of 0.82 basis points compared to yesterday
  
• The Bank Indonesia Board of Governors Meeting on June 19-20, 2024, decided to maintain the BI-Rate at 6.25%, the Deposit Facility interest rate at 5.50%, and the Lending Facility interest rate at 7.00%
  
• In May 2024, the economy's broad money supply (M2) increased significantly to Rp8,965.9 trillion, reflecting a 7.6% YoY growth. This growth was fueled by a notable 11.4% increase in loan distribution and a modest 0.6% rise in net foreign assets.

           Sources: Bank Indonesia, PHEI, and Binaartha.

Market Projection
​
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.5235% - 7.2102% for next Monday. Recommendations: FR0102, FR0089, FR0097, FR062, and FR0098.

DOWNLOAD FULL REPORT HERE