By the end of February 2026, global markets were heavily influenced by escalating tensions in the Middle East, as US–Israel military strikes on Iran led to the death of Ayatollah Ali Khamenei and the effective closure of the Strait of Hormuz, driving investors toward safe-haven assets and pushing the US 10-year Treasury yield down to 3.93%, its lowest level since September 2024. Despite these geopolitical shocks, domestic inflationary signals in the US remained mixed: January’s CPI slowed to 2.4% YoY, its lowest since May, while producer prices rose more than expected, reflecting ongoing cost pressures and complicating the Federal Reserve’s outlook. The Fed kept the federal funds rate at 3.5%–3.75%, with officials divided over whether further easing or holding rates steady would be appropriate amid moderating inflation and resilient labor markets. In Indonesia, annual inflation jumped to 4.76% in February, the highest since May 2023, driven by housing (16.19%) and food (3.51%), even as monthly CPI fell slightly by 0.15%, leading Bank Indonesia to maintain its policy rate at 4.75% for the fifth consecutive meeting while emphasizing growth support and rupiah stability. Indonesia’s 10-year government bond yield edged up to 6.47% on March 2, 2026, balancing domestic inflation trends and global uncertainties. The sukuk market remained active, with February issuance rising to IDR 3.7 trillion and YTD total reaching IDR 6.0 trillion, led by Financial Institutions and Pulp & Paper sectors, while corporate bond issuance surged 137.4% YoY to IDR 23.5 trillion, supported by strong demand across Financial, Chemicals, and Pulp & Paper sectors, bringing average daily trading to IDR 4.9 trillion and highlighting robust investor appetite despite geopolitical and market volatility.