Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds extended their decline, with the 5Y yield (FR104) rising 3.3bps to 7.14% and the 10Y yield (FR0108) climbing 5.1bps to 7.22%, resulting in a steepening of the 5Y–10Y curve by 1.8bps, while the INDOBeX Composite fell 0.15%. Market sentiment turned increasingly risk-off after US President Donald Trump declared the tentative ceasefire with Iran effectively over following renewed US airstrikes and the revocation of a waiver allowing Iranian oil sales. Iran responded by rejecting the interim peace agreement and pledging retaliation, fueling concerns over potential disruptions to shipping through the Strait of Hormuz, lifting Brent crude above USD79/bbl and pushing global bond yields higher as investors priced in renewed inflation risks. Domestically, Indonesia’s Consumer Confidence Index eased to 117.8 in June from 120.9 in May, reflecting weaker assessments of current economic conditions and softer expectations for income, employment, and business activity. Meanwhile, Bank Indonesia allotted IDR15.0 trillion in its latest SRBI auction, with the 12-month yield easing slightly to 7.67% and the bid-to-cover ratio improving to 2.61x, indicating continued investor demand for central bank securities. On the credit front, PT Sarana Multigriya Finansial (Persero) fully repaid its IDR1.0 trillion bond upon maturity, leading to the withdrawal of the rating.