Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds traded mixed, with the 5Y yield (FR104) edging up 1.5bps to 7.14% while the 10Y yield (FR0108) eased 1.4bps to 7.12%, resulting in a flattening of the 5Y–10Y curve by 2.9bps, as the INDOBeX Composite rose 0.03%. Global sentiment remained cautious after fresh military exchanges between the US and Iran raised doubts over the durability of the recently agreed ceasefire, with both sides conducting retaliatory strikes and President Trump warning of further action should Iran fail to uphold the agreement. Domestically, the government announced plans to increase cash placements in state-owned banks to IDR400 trillion to ease liquidity pressures, while postponing its planned Panda bond issuance to the end of July to provide Chinese banks with additional time for due diligence. Meanwhile, the Federal Reserve’s balance sheet edged down slightly to USD6.74 trillion, extending its gradual normalization, while Bank Indonesia’s latest SRBI auction awarded IDR15.0 trillion, with the 12-month yield easing to 7.70% despite a softer bid-to-cover ratio. On the credit side, PEFINDO assigned PT Kereta Api Logistik (KA Logistik) an idAA rating with a Stable Outlook, supported by strong parental backing from PT Kereta Api Indonesia (Persero), its leading position in rail-based logistics, and a solid financial profile.