Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesia’s fixed-income market ended mixed, with government bond yields broadly stable but the 5Y–10Y curve bear-steepening by 2 bps, as the 5Y yield rose 1 bp to 7.07% while the 10Y held at 7.00%; sukuk yields were also mixed across tenors, while the INDOBeX Composite remained unchanged at 433.078. In the U.S., July headline CPI rose 0.1% m/m, bringing annual inflation to 2.9%, while core CPI increased 0.2% m/m and eased to 3.1% y/y, reinforcing expectations for gradual Fed easing. Meanwhile, US-Japan coordination to strengthen the yen faces internal differences, with Bessent favoring faster BOJ tightening while Takaichi remains cautious, keeping markets focused on another BOJ hike in September or October. On the domestic credit front, PEFINDO assigned Jamkrida Jabar an idBBB rating with a Stable outlook, supported by its strategic role and 99.92% ownership by the West Java provincial government, although the rating remains constrained by weak operating performance and limited revenue-generation capacity.