Global Market Update

• On May 31st, 2024, the yield on the US 10-year Government Bond closed at a level of 4.4985%, marking a decrease of 4.75 bps from the previous day.
• In May 2024, the UK Manufacturing PMI increased to 51.2 from April's 49.1, reaching its highest level since July 2022, albeit slightly lower than the preliminary estimate of 51.3. Manufacturing output surged at the quickest rate since April 2022, fueled by heightened new orders, improved market conditions, and endeavors to finalize existing contracts.
• In May 2024, Turkey's yearly inflation rate surged to 75.45%, up from 69.80% in the prior month, surpassing market expectations of 74.80%. This marked the highest level since November 2022, primarily due to a sharp increase in housing and utilities prices, which rose by 93.21% compared to 55.55% in April.​

          Sources: UK Office for National Statistics, Bloomberg,  Trading Economics and Binaartha.


            
Domestic Market Update

• On June 3rd , 2024, the Indonesia Government Bond Yield Curve for the 10-year bond closed at a level of 6.9050%, marking a decrease of 1.6 basis points compared to the previous day.
• In May 2024, the year-on-year inflation was 2.84 percent, with the Consumer Price Index (CPI) at 106.37. This increase was mainly because prices went up in categories like food, beverages, and tobacco by 6.18 percent. However, monthly, there was a deflation of 0.03 percent.
• In April 2024, Indonesia welcomed 1.07 million foreign tourists, marking a 2.41% increase from March 2024 and a notable 23.23% rise from April 2023. The majority of visitors were from Malaysia (15.99%), followed by Australia (11.99%), and China (8.06%).

           Sources: BPS, PHEI, and Binaartha.

Market Projection
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We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.4917% - 7.1750% for next Tuesday. Recommendations: FR0102, FR0089, FR0062, FR093, and FR0088.

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