Global Market Update

• On May 16th, 2024, the yield on the US 10-year Government Bond closed at a level of 4.375%, marking an increase of 3 bps from the previous day.
• In April 2024, the annual inflation rate in the euro area remained stable at 2.4%, unchanged from March 2024. This rate was significantly lower compared to the 7.0% recorded a year earlier. In the EU, the annual inflation rate also remained stable at 2.6% compared to March 2024.
• In Q1-2024, Malaysia's economy performed better, with Gross Domestic Product (GDP) expanding by 4.2% YoY, compared to 2.9% YoY in Q4-2023. Throughout this quarter, all sectors on the supply side showed improved growth, especially the Services and Manufacturing sectors.

          Sources: Ministry of Economy Department of Statistics Malaysia, Eurostat, Trading Economics and Binaartha.

            
Domestic Market Update

• On May 17th, 2024, the Indonesia Government Bond Yield Curve for the 10-year bond closed at a level of 6.8926%, marking a decrease of 3.5 basis points compared to the previous day.
• Moodyʼs Ratings ("Moodyʼs") has assigned Baa2 ratings to the senior unsecured yen-denominated bonds issued under the Government of Indonesiaʼs JPY 600 billion samurai shelf programme. The drawdowns have seven tranches, with maturities ranging from 3-20 years.
• Based on transaction data from May 13th to May 16th, 2024, non-residents in the domestic financial market recorded a net purchase of Rp22.06 trillion, consisting of a net purchase of Rp5.30 trillion in government bond markets, a net sale of Rp2.40 trillion in the stock market, and a net purchase of Rp19.17 trillion in the Bank Indonesia Rupiah Securities (SRBI).

           Sources: Moody’s Ratings, Bloomberg, PHEI, Bank Indonesia, and Binaartha.


Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.4975% - 7.1815% for next Monday. Recommendations: FR0102, FR0089, FR0062, FR093, and FR0088.

DOWNLOAD FULL REPORT HERE