August 01, 2024 05:44 GMT
Asia USD Sov Yields Lower, Indonesian CPI Below Estimates
ASIA RATES
Asia sovs yields moved tighter today, with better buying occurring through the belly of the curve. Indonesian CPI came in below expectations, with focus now turning to Monday's GDP data.
INDONESIA
- INDON curve has twist-flattened again today, with better buying seen through the belly of the curve, the 2yr is 4.945% (-4bp), 5yr 4.788% (-6.5bps), 10yr 4.900% (-5.5bps).
- Indonesian CPI slowed the most in two years to 2.13% vs 2.37% est and down on Junes 2.51% print. Core consumer prices increased by 1.95% y/y slightly above the forecast of 1.90%. The fall in July was driven by declines in prices of food, beverages, and tobacco.
- Foreign tourists arrivals rose 9.99% y/y in June.
- 2Q GDP data is due out on Monday consensus is 4.97% down from 5.11% prior.
PHILIPPINES
- PHILIP curve has twist-steepened today with the 5yr outperforming after lagging the move this week. The 2yr is 4.91% (-5bps), 5yr 4.830% (-7.1bps), 10yr 4.96% (-4bps)
- The Philippines' July Mfg PMI fell slightly to 51.2 from 51.3 in June, marking the lowest reading since March 2024. Despite the decline, this is the fourth consecutive month of expansion. Output dropped to 50.9 from 53.1 in June, also the lowest since March 2024.
- Next week we have July CPI with consensus at 4.0%, an increase from the 3.7% reading in June
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