Fixed Income Update 23 Jan 2025
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 23 January 2025
Trump's Speech Encourages a Wait-and-See Approach in the Market
Trump’s statement titled “The Golden Age of America Begins Right Now” has captured the market's attention this week. The upcoming implementation of the new Trump Tariff, set for February 1, 2025, continues to drive a wait-and-see approach in the market.
Domestically, this has contributed to the Rupiah stabilizing and even appreciating slightly over the past week. Additionally, the reduction in Bank Indonesia’s policy rate has begun to influence lower yields on Bank Indonesia Certificates (SRBI) and government bonds (SBN and SBSN).
We anticipate these developments will soon positively impact the real sector, particularly with the approach of religious seasonal events such as Ramadan and Eid al-Fitr in March.
Regards,
KBVS Research Team