Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds staged a solid recovery as the 5Y yield (FR104) declined 7.3bps to 7.28% and the 10Y yield (FR0108) fell more sharply by 24.1bps to 7.19%, leading to a bull-flattening move with the 5Y–10Y curve compressing by 16.8bps, while the INDOBeX Composite edged up 0.16% to 426.408 as domestic duration demand strengthened. Global sentiment remained somewhat cautious as US inflation accelerated to a two-year high of 4.2% YoY in May 2026, driven by a 23.5% spike in energy prices amid ongoing Middle East tensions, with core inflation also firming to 2.9% YoY, keeping expectations tilted toward a higher-for-longer Fed stance. Domestically, Bank Indonesia fully absorbed its IDR15.0tn SRBI auction on 10 June 2026, with particularly strong demand concentrated in the 12-month tenor where winning yields reached 7.57%, signalling sustained appetite for rupiah-denominated instruments despite external volatility. On the other hand, real economic indicators remained resilient as Indonesia’s new car sales grew 14.0% YoY to 69,219 units in May, helping offset a modest dip in consumer confidence to 120.9, which nonetheless stayed comfortably in expansionary territory. On the credit side, PEFINDO assigned an A+ Stable Outlook rating to PT Prima Armada Raya (PAR), reflecting its strategic role and captive demand within the Pertamina ecosystem, while SMART’s rating was withdrawn following full repayment of its IDR300bn maturing bond.