In September 2024, financial markets saw various shifts across key indicators. The 10-Year US Treasury yield
exhibited a downtrend, falling from 3.9% at the start of the month to 3.62% by mid-September, before
slightly recovering to 3.75%. This movement was influenced by expectations of Federal Reserve rate cuts
amid softening inflation and unemployment figures. Simultaneously, the Federal Reserve lowered its federal
funds rate by 0.5%, aiming to balance economic growth with inflation control. In Indonesia, the 10-year
government bond yield followed a similar downward trend, dropping from 6.64% to 6.43%, driven by positive
economic data, stable inflation, and supportive central bank policies, alongside improved investor sentiment
toward emerging markets. Bank Indonesia also reduced its BI Rate by 25 bps to 6.00%, anticipating
continued low inflation and stable exchange rates. Moreover, the corporate bond market in Indonesia surged
by 63.3% year-over-year, reaching IDR 4.9 trillion in issuance. However, the issuance failed to meet the IDR
6.5 trillion in corporate bond maturities during the same period, reflecting companies’ anticipation of lower
funding costs with potential rate cuts. Additionally, the sukuk market remained relatively quiet, with no new
issuances in September. These developments highlight the evolving dynamics in global and Indonesian
financial markets, influenced by economic data, central bank policies, and investor sentiment across bond
and sukuk markets.