Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a bull flattening in the 5Y–10Y segment, with the 5Y yield (FR104) rising +0.9 bps to 6.25% while the 10Y yield (FR0108) edged down -0.5 bps to 6.56%, narrowing the spread by -1.4 bps, as INDOBeX inched up 0.03%. Sentiment improved modestly on signs of geopolitical de-escalation, with progress toward a potential US–Iran deal and a 10-day Israel–Lebanon truce supporting hopes for broader regional stability, although key uncertainties around the nuclear program and the Strait of Hormuz remain. Domestically, focus is shifting toward Indonesia’s funding strategy, with a multi-tenor Samurai bond issuance (3–20Y) expected to price on April 23, as rising oil prices and recent rating outlook pressures continue to weigh on fiscal dynamics. In the US, the Federal Reserve’s balance sheet expanded modestly by around USD11.8bn WoW to USD6.71tn, extending its gradual increase. On the credit side, CMND was assigned an idA (stable) rating, reflecting its strong market presence and integrated operations, though still constrained by high leverage and competitive intensity, while SOF is set to repay its IDR581.5bn Jul-2026 bonds using a mix of internal and external funding, supported by solid liquidity and available credit facilities.