Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds came under renewed pressure, with the 5Y yield (FR104) surging 14.5bps to 7.39% while the 10Y yield (FR0108) rose 3.6bps to 7.34%, resulting in a sharp flattening of the 5Y–10Y curve by 10.9bps. The INDOBeX Composite declined 0.15% to 429.213. Global markets remained focused on Middle East developments as the US paused its airstrikes on Iran for a second consecutive night, signaling a temporary diplomatic window, although regional tensions remained elevated after Iran-backed Houthi forces launched missile and drone attacks on Saudi Aramco-linked facilities in Jizan and Yanbu, prompting retaliatory strikes by the Saudi-led coalition. Domestically, Indonesia tightened export inspections on alumina and nickel pig iron shipments to detect rare earth elements and radioactive materials, reinforcing the government’s strategy to strengthen oversight of critical mineral resources and promote downstream value addition. Meanwhile, Bank Indonesia Governor Perry Warjiyo unexpectedly resigned for personal reasons after serving since 2018, with Senior Deputy Governor Destry Damayanti appointed as acting governor pending the appointment of a permanent successor. Bank Indonesia also allotted IDR15.0 trillion of SRBI from IDR28.2 trillion in bids, equivalent to a 1.88x bid-to-cover ratio, with demand remaining heavily concentrated in the 12-month tenor, where the weighted average winning yield eased to 7.637%.