Fixed Income

Fixed Income Update 30 May 2024

Fikri C. Permana 30 May 2024

Thursday, 30 May 2024

Caution! The Global Fixed Income Market Remains Volatile

Sales of new single-family houses in the US for Apr ‘24 declined -4.7% MoM, meanwhile the decline in initial jobless claims adds further concern that the US labor market remains robust and New Orders for manufactured durable goods in the US for Apr ‘24 rose by 0.7% MoM.

Starting on 1 May ‘24, the Treasury Department has launched a series of buybacks targeting seasoned and harder-to-trade debt. Then in Jun ‘24, The Fed is set to begin quantitative tightening (QT). But there’s also some downside to the practice, whereoff last time the Fed implemented such a program in 2019, some banks fell very short of reserves, then lead to a “repo crisis”.

During May '24 (as of 27 May), Non-Residents conducted net buy of tradable SBN amounting to USD0.81 bn (or IDR12.57 tn), so that Non-Resident ownership in IDR Tradable SBN reaching IDR802.84 tn (14.03% of the total tradable SBN).


Fikri C Permana - KBVS Research Team