Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds remained under pressure, with the 5Y yield (FR104) rising 3.6bps to 7.16%, while the 10Y yield (FR0108) eased 1.9bps to 7.18%, resulting in a flattening of the 5Y–10Y curve by 5.4bps, as the INDOBeX Composite declined 0.18%. Domestically, the government introduced legal and tax protections for investors in Danantara’s Patriot and Merah Putih bonds, shielding purchases from criminal prosecution, tax investigations, and civil lawsuits in an effort to encourage funds held outside the formal financial system to be redirected toward domestic development financing. In the US, liquidity conditions continued to expand, with M2 money supply reaching a record USD22.8 trillion in April, although the current account deficit widened further to USD226.8 billion in 1Q26, highlighting persistent external imbalances despite stronger energy export revenues. Meanwhile, Bank Indonesia’s latest SRBI auction attracted solid demand, receiving IDR46.9 trillion in bids and awarding IDR18.0 trillion, with the 12-month tenor accounting for the bulk of investor interest despite the higher yield environment. On the credit side, PEFINDO affirmed Panin Bank’s AA corporate rating with a Stable Outlook while assigning ratings to its proposed bond and subordinated bond issuances, while BJBR is expected to repay its IDR379.0 billion subordinated bond maturity in July using internal funds supported by a strong liquidity position.