One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds sold off sharply, with benchmark yields rising across most tenors. The 5Y yield (FR104) climbed 19.8bps to 7.01%, while the 10Y yield (FR0108) increased 14.1bps to 7.18%, resulting in a 5.7bps flattening of the 5Y–10Y curve. The 1Y, 15Y, and 20Y yields also rose by 8.0bps, 11.0bps, and 5.5bps to 6.72%, 7.23%, and 7.18%, respectively, while the INDOBeX Composite gained 0.48% to 437.418. The sell-off came alongside firmer U.S. economic data, as U.S. job openings increased by 89,000 MoM to 7.27 million in July, although the figure remained below the 7.30 million market consensus, pointing to continued resilience in labor demand despite signs of moderation. Meanwhile, the U.S. manufacturing sector remained firmly in expansion, with the ISM Manufacturing PMI easing to 54.6 in August from 55.6 in July, marking its eighth consecutive month above the 50 threshold. However, slower new-order growth and softer employment pointed to some moderation in underlying momentum, while elevated prices and supplier delivery times highlighted persistent cost and supply-chain pressures. Domestically, Bank Indonesia awarded USD557.5 million of SVBI in its September 1 auction from USD572.5 million in total bids, with demand heavily concentrated in the 1-month tenor, which attracted USD522.5 million in bids and was awarded at a 3.593% weighted-average yield. In the corporate bond market, investors continued to monitor credit conditions amid ongoing refinancing and liquidity risks across issuers.