Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds traded mixed, with the 5Y yield (FR104) edging down 0.7bps to 7.08% while the 10Y yield (FR0108) rose 1.4bps to 7.12%, resulting in a steepening of the 5Y–10Y curve by 2.0bps, as the INDOBeX Composite gained 0.08%. Regional markets remained cautious as the US dollar strengthened against most Asian currencies, although bond markets across Asia stayed relatively supported by lower yields, with China’s 2-year government bond yield falling to its lowest level since February 2025 amid ample domestic liquidity. In the US, the ISM Services PMI eased to 54.0 in June from 54.5 in May, indicating the services sector continued to expand at a slower pace as softer business activity and new orders were partly offset by an improvement in employment. Domestically, investors turned their attention to the government’s upcoming IDR32 trillion SUN auction, which will offer benchmark bonds across maturities from 2026 to 2064, with a maximum issuance target of IDR48 trillion. On the credit front, PT Lontar Papyrus Pulp & Paper Industry and PT Bank Mandiri (Persero) Tbk fully repaid their maturing IDR2.73 trillion and IDR1.95 trillion bonds, respectively, leading to the withdrawal of the respective debt ratings.