Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds rallied strongly across the curve, with the 5Y yield (FR104) dropping sharply by -24.2 bps to 6.45% and the 10Y yield (FR0108) falling -12.4 bps to 6.60%, resulting in a notable bull steepening of the 5Y–10Y curve by +11.8 bps, while INDOBeX was broadly flat at -0.03%. The move came amid improving risk sentiment as markets continued to monitor progress toward a potential US–Iran peace agreement, with Washington awaiting Tehran’s response to a proposal that could reopen the Strait of Hormuz and ease disruptions in global energy markets. The proposed framework reportedly includes sanctions relief and a temporary halt to uranium enrichment, although geopolitical tensions remain elevated following renewed Israeli strikes in Beirut targeting Hezbollah. In the US, initial jobless claims rose modestly to 200k in the week ending May 2, pointing to some softening in labor market conditions, though overall employment trends remain relatively resilient. Domestically, SVBI issuance rebounded to USD110mn from USD25mn in the prior auction, lifting YTD issuance to USD7.24bn, although demand softened with the bid-to-cover ratio easing to 2.51x. On the credit side, Fitch affirmed ICBC’s ‘AAA(idn)’ (stable) rating, supported by strong backing from its Chinese parent and government links, while ANZI’s ‘AAA(idn)’ ratings were also affirmed prior to withdrawal for commercial reasons.