Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a bear steepening in the 5Y–10Y segment, with the 5Y yield (FR104) declining -2.5 bps to 6.23% while the 10Y yield (FR0108) rose +1.3 bps to 6.57%, widening the spread by +3.8 bps, as INDOBeX edged up 0.02%. The macro backdrop remained cautious, as prospects for a near-term US–Iran resolution dimmed ahead of a potential second round of talks, with both sides maintaining firm positions on key issues including the nuclear program and control of the Strait of Hormuz. Domestically, Indonesia passed a long-awaited labor reform aimed at strengthening protections for domestic workers, while in the US, hiring momentum picked up with ADP data showing an acceleration in job creation, pointing to continued labor market resilience. On the credit side, Fitch affirmed BBCA and BBRI at ‘BBB’ (negative), supported by their strong market positions and fundamentals, though both remain constrained by sovereign-linked risks and broader macro uncertainty.