In August 2024, the 10-Year US Treasury Yield showed significant volatility then stabilized at 3.9%
by month-end due to mixed economic signals and weaker demand in Treasury auctions.
Concurrently, the US headline CPI decreased slightly to 2.89%, while Fed Chair Jerome Powell
suggested an impending interest rate cut to meet the Fed’s 2% inflation target. In Indonesia, monthto-month deflation was recorded at 0.03%, with a year-on-year inflation rate of 2.12%, driven by
fluctuating prices in essential commodities and a core inflation rise of 1.95%. Meanwhile, Bank
Indonesia held its rate at 6.25% amidst a stable inflation environment, and the 10-year government
bond yield decreased to 6.62% in August, reflecting positive domestic conditions. Additionally, sukuk
issuance surged 40% YoY to IDR 2.8 trillion, while corporate bond issuance fell sharply by 80% YoY
to IDR 2.1 trillion, highlighting a challenging market outlook as companies anticipated potential rate
cuts.