Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds traded mixed with a slightly firmer tone, as the 5Y yield (FR104) declined 4.2bps to 6.76% and the 10Y yield (FR0108) eased 2.3bps to 6.75%, resulting in a mild steepening of the 5Y–10Y curve by 2.0bps, while the INDOBeX Composite edged up 0.01%. Market sentiment improved modestly after Iran stated that the latest US proposal had “narrowed the gaps” in ongoing negotiations, raising cautious optimism over progress toward a broader peace agreement and the eventual reopening of the Strait of Hormuz, although key issues surrounding sanctions relief and Tehran’s nuclear program remain unresolved. Domestically, Airlangga Hartarto clarified that Indonesia’s new export control policy will initially apply to secondary processed commodities such as CPO, RBD olein, and ferronickel, as the government aims to strengthen pricing power and boost foreign exchange retention through tighter FX rules for exporters. Meanwhile, US initial jobless claims fell slightly to 209k in the second week of May, broadly in line with expectations and reinforcing the view that the labor market remains relatively resilient. On the credit side, PEFINDO assigned Perum Jasa Tirta II (JSTI) an idAAA rating with stable outlook, while Indonesia Eximbank (BEXI) is expected to repay its IDR714.5bn maturing bonds using internal funds supported by solid liquidity and bank placements totaling IDR3.2tn as of March 2026.