Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a bear flattening in the 5Y–10Y segment, with the 5Y yield (FR104) rising +3.9 bps to 6.27% and the 10Y yield (FR0108) increasing +2.0 bps to 6.59%, narrowing the spread by -1.9 bps, while INDOBeX edged up 0.05%. The macro backdrop remained uncertain, as the US extended its ceasefire with Iran indefinitely amid stalled negotiations, while key sticking points—including the Strait of Hormuz and ongoing naval blockade—continue to cloud the outlook. Domestically, Bank Indonesia kept its benchmark rate unchanged at 4.75% for a seventh consecutive meeting to support the rupiah and growth, even as the currency weakened to around Rp17,140/USD; inflation remained contained at 3.48% in March, and the central bank maintained its 2026 growth outlook at 4.9%–5.7%. Credit conditions also stayed supportive, with loan growth edging up to 9.49% YoY, driven by investment lending and backed by ample liquidity. On the credit side, MBMA has fully repaid its IDR825bn bonds, leading to a rating withdrawal, while ADIN was assigned an idAA (stable) rating, supported by its strong market position and cost-efficient operations, though still exposed to commodity concentration and price volatility.