Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds were broadly steady, with a mild bear flattening in the 5Y–10Y segment as the 5Y yield (FR104) rose +1.0 bp to 6.53% and the 10Y yield (FR0108) edged up +0.5 bps to 6.75%, narrowing the spread by -0.4 bps, while INDOBeX was essentially flat at -0.003%. The macro backdrop remained cautious, as US–Iran negotiations showed limited progress despite renewed diplomatic engagement, highlighted by Abbas Araghchi’s meeting with Vladimir Putin in Russia, while key differences over the nuclear program and the reopening of the Strait of Hormuz continue to cloud the outlook. Domestically, the rupiah weakened to 17,224/USD, underperforming regional peers amid elevated oil prices, which continue to weigh on fiscal and external balance concerns, while foreign flows remained negative with net bond outflows of USD103.5mn. That said, underlying investment momentum stayed resilient, with FDI rising 8.5% YoY to Rp250tn in 1Q26, led by base metals, services, and mining. Liquidity conditions were mixed, as SVBI issuance eased on a weekly basis alongside improved demand, while SRBI issuance rebounded sharply, albeit with a softer bid-cover ratio. On the credit side, FIFA has fully repaid its IDR1.64tn bonds, resulting in a rating withdrawal.