Fixed Income Daily One Pager Series — Daily Bond Lantern
Yields on Indonesian government bonds in the benchmark series for the 1-year (FR0059), 5-year (FR104), 10-year (FR0108), 15-year (FR0106), and 20-year (FR0107) bonds rose 24.5 bps, 1.0 bps, 16.1 bps, 11.3 bps, and 8.3 bps respectively, closing at 7.14%, 6.96%, 7.00%, 7.13%, and 7.11%, resulting in a 5Y–10Y curve steepening of 15.1 bps, while sukuk yields across the 2-year (PBS003), 4-year (PBS030), 13-year (PBS034), and 25-year (PBS038) tenors rose 8.5 bps, 3.6 bps, eased 0.8 bps, and increased 4.2 bps, closing at 6.91%, 7.08%, 7.14%, and 7.18%, with the INDOBeX Composite falling 0.33% to 431.545. On the macro front, an interim US–Iran peace deal reportedly reopened the Strait of Hormuz and established a 60-day negotiation window on nuclear restrictions. Bloomberg Intelligence noted that Bank Indonesia’s 25 bps rate hike to 5.75% was aimed at supporting the rupiah and anchoring inflation, although the currency remains vulnerable to external and domestic pressures, leaving room for further tightening. Separately, BI has now raised rates by a cumulative 100 bps since May as inflation accelerated to 3.08%, while US jobless claims continued to point to a “low firing, low hiring” labor market. Meanwhile, TAKA was assigned idBBB/stable by PEFINDO on solid survey operations but high leverage, and WOM Finance was affirmed at idAAA/stable, supported by strategic backing from Maybank.