Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds came under mild pressure as yields moved higher across the belly of the curve, led by the 10Y yield rising 5.9 bps to 6.93%, while the 5Y yield edged up 1.4 bps to 6.79%, resulting in a 4.5 bps steepening in the 5Y–10Y segment, even as the long end bucked the trend with 15Y and 20Y yields easing 1.3 bps and 2.4 bps respectively, pointing to stronger demand for longer-dated bonds, while the INDOBeX Composite held steady at 438.994. The move came against a broader backdrop of persistent fiscal and external headwinds, with Indonesia’s current-account deficit widening to a record US$12.5bn, or 3.3% of GDP, in 2Q26 on the back of higher oil prices, though pressures are expected to moderate in 2H26 as commodity prices ease. Meanwhile, the US economy stayed resilient, with Services PMI surging to 56.8, its strongest reading since December 2024, even as Manufacturing PMI softened to 53.2 amid rising energy costs, while Bessent’s Treasury buyback plan briefly pulled long-end yields lower before fiscal concerns pushed them back up. On the domestic supply side, SVBI issuance rose to US$1.49bn with the 1M yield ticking up to 3.5928%, while CGIF was affirmed at idAAA with a Stable Outlook by PEFINDO, reflecting strong backing from ADB.