• The Indonesian benchmark series of LCY government bond were mixed on July 19, with the 10-yr benchmark yield rose by +2.0 bps to 6.93%, while the 2-yr yield surged by +6.0 bps to 6.70%.
• The IDR weakened against the USD on Friday (USD/IDR rose by 0.20% to 16.190). This depreciation mirrored a broader trend in Asian currencies, which were pressured by rising US gov’t bond yields.
• Bank Indonesia reported based on transactions from July 15–18, 2024, non-residents recorded a net purchase of IDR0.69tn, consisting of a net buys of IDR0.67tn in the stock market, a net buys of IDR0.40tn in the SRBI, and a net sells of IDR0.38tn in SBN market.
• The government will conduct SUN auctions in local currencies on Tuesday, aiming for an indicative target of IDR22tn. The auctions will feature new issuance of SPN03241023 and the reopening of SPN 12250710, FR101, FR100, FR98, FR97, and FR102. We anticipate the bid-to-cover ratio to fall between 1.6 and 2.3.
• In Friday's Indo-GB series trading, FR0101, FR0100, and FR0097 attracted significant interest in outright transactions, with the highest trade volumes of IDR4.74tn, IDR2.26tn, and IDR2.04tn, respectively. Additionally, PBS032, FR0100, and FR0097 were the most frequently traded series.
Market Forecast