SUN market was mixed at the weekend, amidst a positive response to the sloping of US Consumer and Producer level inflation, which may potentially ease the Fed’s Hawkish stance. Average US retail fuel price was under USD4/Gallon, the lowest since March 2022. As a note, fuel price broke record at USD5.02/Gallon last June. Both YoY US Headline and Core CPI in July declined to 8.5% (Vs. Jun. 9.1%) and 5.9% (Vs. Jun. 5.9%). Meanwhile, MoM US Final Demand PPI deflated 0.5% (Vs. Jun. +1.0%). The decline of PPI and CPI increased the bet in Futures market that FFR increase in September will be +50Bps (Vs. Prev. +75Bps).

Corporate Bonds
BTN Announces Earnings for PUB IV Bonds. PT Bank Tabungan Negara (Persero) Tbk. (BBTN) announced the realization of the Continuous Public Offering of Bank BTN’s ShelfRegistered Bonds IV with Fixed Interest Rates (PUB IV) of IDR 2.5 trillion. This PUB BTN achievement is equivalent to 31.25% of the initial PUB IV draft that was prepared, which was IDR 8 trillion. Based on the BBTN management announcement dated August 12, 2022, PUB IV worth IDR 8 trillion is designed to be issued in 2 years. This period covers 11 August 2020 to 11 August 2022. (Bisnis Indonesia)

Domestic Issue
Energy Subsidy Realization at IDR 88.7 Trillion. The Ministry of Finance (Kemenkeu) has disbursed energy subsidy budget of IDR 88.7 trillion for until July 31, 2022. This realization increased by 27.5% compared to the same period last year at IDR 69.52 trillion. The increase in the realization of energy subsidies is because the government continues to hold back energy prices when there is an increase in global oil prices. In this case, the largest is for subsidies for fuel oil (BBM) pertalite, diesel, and 3Kg LPG. (CNN Indonesia)

New Issue FR95, FR96 and FR97 in SUN auction. This week, the Government offered a new series at auction Tuesday, namely FR95 (6-Year), FR96 (11-Year), and FR97 (21-Year). Meanwhile, Bloomberg data expects July Indonesian Trade Balance to book a surplus of +USD3.8 billion (Vs. Jun. +5.1 billion). Other than the decline of some global commodity prices, NHKSI Research sees the economic slowdown of export destination countries will push the July surplus down. The survey also projects July YoY export growth to fall at +30.7% (Vs. Jun. +40.7%). However, July YoY import is expected to grow +33.3% (Vs. Jun. 21.9%).

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