Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds ended mixed, with the 5Y yield (FR104) rising 1.3bps to 7.36% and the 10Y yield (FR0108) increasing 1.1bps to 7.33%, resulting in a slight flattening of the 5Y–10Y curve by 0.1bps, while the INDOBeX Composite declined 0.07%. Global sentiment remained cautiously constructive as the US and Iran extended their pause in hostilities, with Oman-mediated negotiations shifting toward reopening shipping through the Strait of Hormuz. Progress in restoring maritime traffic is viewed as a prerequisite for broader discussions on Iran’s nuclear program and a permanent ceasefire, although risks remain elevated as disruptions in the Strait of Hormuz and the Red Sea continue. Meanwhile, US private-sector hiring moderated slightly, with ADP weekly employment growth easing to 15,000 from 16,500, suggesting a modest slowdown in hiring while remaining consistent with a resilient labor market. Domestically, the government successfully raised IDR10.0 trillion in its 28 July SBSN auction, matching its indicative target from IDR24.88 trillion in bids for a healthy 2.49x bid-to-cover ratio, with demand concentrated in the SPNS12042027, SPNS03022027, and PBS030 series.