Global Market Update

• On October 3rd, 2024, the US 10-Year Government Bond yield closed at 3.8458%, an increase of 6.49-bps compared to the previous close.
  
• The S&P Global UK Construction PMI surged to 57.2 in September 2024, up from 53.6 in August and exceeding expectations of 53.1. This marked the fastest sector growth since April 2022, indicating a strong rebound in UK construction demand despite high interest rates.
  
• The U.S. unemployment rate fell to 4.1% in September 2024, the lowest in three months, down from 4.2% in August, surpassing expectations.
  

            Sources: S&P Global, U.S. Bureau of Labor Statistics, Bloomberg, and Trading Economics.
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Domestic Market Update

• On October 4th, 2024, the Indonesia Government Bond 10 Years Yield closed at 6.6366%.
  
• PEFINDO assigned an idA rating to PT Merdeka Battery Materials Tbk (MBMA) for its IDR 2 trillion Bond II Year 2024 and affirmed the same rating for MBMA's outstanding Bond I, with a stable outlook. The rating reflects MBMA’s vertically integrated operations, strong group synergies, and large mining reserves but is constrained by project development risks and nickel price volatility.
  
• PEFINDO assigned an idA rating to PT Lontar Papyrus Pulp & Paper Industry (LPPI) for its IDR 1.25 trillion Shelf Registered Bond III Year 2024 and an idA(sy) rating for its Sukuk Mudharabah of the same value. It also affirmed the idA rating for LPPI's previous bonds, with a stable outlook. The rating reflects LPPI’s strong position in the pulp and tissue industry, integrated operations, and solid management, but is constrained by high working capital needs and product/raw material price volatility.
  

           Sources: PEFINDO, PHEI, and Bloomberg.




Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.5243% - 6.6561% for Next Monday. Recommendations: FR0102, FR0089, FR0100, FR0062, FR0088, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.

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