One Pager Series — SIMINVEST Bond Pharos
Indonesian government bond yields rose across the curve, with the 5Y and 10Y yields increasing 10.5bps and 11.2bps to 6.94% and 7.10%, steepening the 5Y–10Y spread by 0.7bps, while INDOBeX Composite declined 0.21% to 439.805. Meanwhile, US manufacturing accelerated sharply, with September PMI rising to 57.0, while Indonesia’s M2 growth eased to 8.2% YoY but credit growth strengthened to 13.3%. Oil remained volatile amid Strait of Hormuz supply concerns and Iran diplomacy. On the credit side, PEFINDO assigned LPS an idAAA rating with a stable outlook, while SMRA’s idA+ rating was affirmed, supported by its property business and recurring income despite weaker sales and higher leverage.