One Pager Series — SIMINVEST Bond Pharos
Indonesian bond yields were mixed as the 5Y–10Y curve steepened by 1.1 bps, with the INDOBeX Composite slipping 0.05% to 431.462. On the macro front, US services activity hit a six-month high as the ISM Services PMI rose to 55.4, though employment contracted for a second month and prices paid climbed to a four-year high of 72.6 on rising fuel costs. Meanwhile, Middle East supply risk kept energy prices elevated with US diesel at a four-year high, and SRBI demand thinned as weekly issuance jumped to Rp44.00tn while the bid-to-cover ratio fell to 1.81x and the 12M yield was cut to 7.000%. On the credit side, PEFINDO assigned PT LiuGong Finance Indonesia an idAA+ rating with a Stable outlook on strong Group backing.