Fixed Income Update 04 Jun 2024
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 4 July 2024
US Political Developments and Labor Market Awaited by Global Market Participants
The data releases that influenced yield movements in the week of Jun 27th-Jul 3rd, ‘24 are as follows:
• Weekly initial jobless claims for the week ending Jun 22nd, ‘24, fell by 5K to 233K
• The number of job openings in May ‘24 rose by 221K
• The personal consumption expenditure (PCE) price index in the US for May ‘24 was unchanged 0.0% MoM or 2.6% YoY
• The ISM Manufacturing PMI in Jun ‘24 unexpectedly declined to 48.5
• The RealClearMarkets/TIPP Economic Optimism Index in the US for Jul ‘24 rose by 3.7 points
• The University of Michigan consumer sentiment in US for Jun ’24 was revised higher to 68.2
From the domestic side, as expected, the headline CPI continued its deflationary trend for the second consecutive month, registering at -0.08% MoM in Jun ‘24. This brought the annual rate to 2.51% YoY. Core inflation has also decreased to 1.90% YoY.
At the same time, the S&P Global Indonesia Manufacturing PMI in Jun ‘2024 fell to 50.7 (Prev: 52.1), the lowest level since May ‘23.
The labor market conditions in the US will again draw attention. Domestically, the release of FX Reserves and Consumer Confidence data is expected to drive sentiment in the domestic financial market.
Regards,
Fikri C Permana - KBVS Research