Global Market Update

• On September 17th, 2024, the US 10-Year Government Bond yield closed at 3.6456%, a decrease of 2.8-bps compared to the previous close.
• Eurozone annual inflation eased to 2.2% in August 2024, the lowest since July 2021, down from 2.6% in July. The biggest contributors were rising prices for services (4.1%) and food, alcohol & tobacco (2.3%). Inflation slowed for non-energy goods (0.4%), while energy prices dropped (-3%).
• The UK's annual inflation rate remained steady at 2.2% in August 2024, matching July and expectations. Airfares, especially European routes, saw the biggest rise (11.9% vs -10.4%). Prices also rose faster for recreation and culture (4%) and transport (1.3%), including smaller declines in second-hand car prices (-6.6% vs -8.4%).

            Sources: Eurostat, Office for National Statistics – UK, Bloomberg, and Trading Economics.
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Domestic Market Update

• On September 18th, 2024, the Indonesia Government Bond Yield closed at 6.6155%, marking its lowest level in six months, while the ICBI reached a six-month peak, hitting 393.4510.
• Bank Indonesia's Board of Governors Meeting on September 17-18, 2024, decided to lower the BI Rate by 25 bps to 6.00%, the Deposit Facility rate by 25 bps to 5.25%, and the Lending Facility rate by 25 bps to 6.75%. This decision aligns with the controlled inflation forecast for 2024-2025 within the target of 2.5±1%, Rupiah stability, and the need to strengthen economic growth.
• Credit growth in August 2024 stayed strong at 11.40% YoY, driven by sustained lending interest, sufficient funding, liquidity shifts to loans by banks, and Bank Indonesia’s KLM support.

           Sources: Bank Indonesia, Bloomberg, and PHEI.

Market Projection
We predict the 10-year Indonesia Government Yield Curve will continue to move within range 6.6004% - 6.7337% for Tomorrow. Recommendations: FR0062, FR0088, FR0093, FR0091, FR0087, PBS038, PBS033, PBS005, ORI023T6, ORI025T6 and ORI024T6.

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