Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a modest bull flattening in the 5Y–10Y segment, with the 5Y yield (FR104) rising +0.9 bps to 6.25% while the 10Y yield (FR0108) slipped -0.4 bps to 6.56%, narrowing the spread by -1.3 bps, as the INDOBeX Composite eased -0.01% to 440.296. Market sentiment was shaped by US–Iran talks that showed renewed strain amid Hormuz tensions and nuclear disputes, while Washington reinforced its Indo-Pacific presence through expanded Balikatan drills in the Philippines. Domestically, the rupiah firmed on strong foreign inflows into bonds and bills, totaling ~IDR15.6tn last week, the largest weekly inflow this year. On the credit side, PT Bussan Auto Finance fully repaid its IDR841.0bn idAAA-rated bonds using internal funds, prompting rating withdrawal, while PT Oto Multiartha (idAAA) plans to repay its IDR315.0bn Jul-2026 notes via a mix of internal and external funding, supported by ample liquidity.