Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds came under pressure, with a bear flattening in the 5Y–10Y segment as the 5Y yield (FR104) surged +15.3 bps to 6.42% and the 10Y yield (FR0108) rose +11.3 bps to 6.70%, narrowing the spread by -4.0 bps, while INDOBeX declined 0.30%. The sell-off was driven by a more risk-off macro backdrop, as US–Iran tensions remained unresolved, with negotiations stalled and the naval blockade still in place, keeping volatility in energy markets elevated. Domestically, pressure on the rupiah intensified, weakening 0.7% to 17,295/USD—its largest daily drop in seven months—as higher oil prices weighed on sentiment, although liquidity conditions remained supportive with M2 money supply growing 9.7% YoY, underpinned by solid M1 and credit expansion. In the US, initial jobless claims rose modestly to 214k, with continuing claims at 1.82mn, suggesting layoffs remain relatively contained. On the credit side, MDKA is set to repay its IDR1.48tn Aug-2026 bonds using a mix of internal and external funds, supported by cash reserves and available facilities, while BEXI has fully repaid its IDR278bn bonds, leading to a rating withdrawal.