Fixed Income Update 29 Aug 2024
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 29 August 2024
The Time Has Come!
Jerome Powell statement “the time has come for policy to adjust,” in Jackson Hole, Wyoming, reinforcing expectations for a rate cut at the central bank’s next meeting. However, heightened geopolitical risks in the Middle East, has limited the further decline of the DXY.
On the domestic front, the ongoing trend of Fed Rate cut expectations, continues to positively influence the domestic financial markets. But, we remain cautious in monitoring the developments of the regional elections (Pilkada) and their impact on central-local government policy coordination, particularly in key regions.
In the coming week, the data to be anticipated are as follows:
- Global Data: US data, including weekly initial jobless claims, GDP, pending home sales, PCE Prices, inflation expectation, ISM Manufacturing PMI, JOLT’s Job Opening; then the Germany’s retail sales and EU’s CPI.
- Regional data : Japan’s Tokyo Core CPI and industrial production and China’s Caixin Manufacturing PMI.
- Indonesia Data: Nikkei Manufacturing PMI and CPI Inflation.
Regards,
Fikri C Permana - KBVS Research