In August, the 10-year U.S. Treasury yield eased to 4.23% from a mid-July peak of 4.48%, as FED Chair Powell struck a dovish tone at Jackson Hole, reinforcing expectations of a September rate cut. U.S. headline CPI rose to 2.71% YoY in July (vs. 2.67% prior), while core CPI accelerated to 3.06% YoY, above consensus. Markets priced in further easing, though upside risks remain from tariff-driven inflation, heavy Treasury issuance, and political challenges to FED independence. Indonesia recorded -0.08% MoM deflation and 2.31% YoY inflation in August, with core easing to 2.17%. At its Aug 19–20 meeting, Bank Indonesia cut the BI-Rate by 25 bps to 5.00%, citing stable inflation, rupiah resilience, and growth support. Indonesia’s 10-year government bond yield declined from 6.56% to 6.34%, its lowest since 2023, underpinned by foreign inflows and BI’s dovish stance despite political unrest. Sukuk issuance fell sharply to IDR 2.5 trillion in August from IDR 9.7 trillion in July, bringing the YTD total to IDR 34.6 trillion, still well above maturities of IDR 13.4 trillion. Corporate bond issuance rose 86.6% YoY to IDR 4.0 trillion, though well below July’s surge, lifting YTD issuance to IDR 102.6 trillion and outpacing maturities of IDR 72.7 trillion, signaling sustained issuer confidence.