One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds weakened, with the 5Y yield (FR104) rising 1.6bps to 6.93% and the 10Y yield (FR0108) climbing 2.0bps to 7.17%, steepening the 5Y–10Y curve by 0.4bps, while the INDOBeX Composite fell 0.13%. Global sentiment remained pressured as the US 10Y Treasury yield rose above 5% amid higher oil prices, persistent inflation concerns, and rising government debt. Indonesia’s external debt edged up to USD454.8bn in July, with annual growth accelerating to 4.9%. Domestically, the government awarded IDR34.0tn in the latest SBN auction from IDR60.97tn in bids, with strongest demand for FR0110, while Bank Indonesia awarded USD22mn in the SVBI auction, with the 1-month tenor receiving USD62mn in bids at a 3.70% weighted-average yield.