Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds traded mixed, with the 5Y yield (FR104) edging up 0.5bps to 7.11% and the 10Y yield (FR0108) rising 1.8bps to 7.14%, resulting in a modest steepening of the 5Y–10Y curve by 1.3bps, while the INDOBeX Composite gained 0.06%. Market attention remained focused on geopolitical developments after Iran reiterated plans to strengthen oversight of maritime traffic through the Strait of Hormuz ahead of renewed indirect talks with the US in Qatar. The proposal, which could involve a joint framework with Oman to manage vessel movements, has raised concerns over potential disruptions to shipping costs and global energy markets. Domestically, the government successfully raised IDR10.0tn in its latest SBSN auction from total bids of IDR15.9tn, translating to a bid-to-cover ratio of 1.59x, with demand concentrated in the SPNS01032027 and PBS040 series. Meanwhile, US labor market data continued to point to underlying resilience, with job openings unexpectedly rising to 7.59 million in May, the highest level in a year and well above market expectations, suggesting labor demand remains firm despite geopolitical uncertainty and elevated energy prices. On the credit front, PEFINDO assigned an idAA rating to PT Indonesia Infrastructure Finance’s proposed perpetual notes while affirming its idAAA corporate rating and Stable Outlook, and also assigned an idAA rating with a Stable Outlook to PT Penjaminan Jamkrindo Syariah, supported by strong backing from its ultimate shareholder and solid capitalization.