One Pager Series — SIMINVEST Bond Pharos
Indonesian government bond yields were mixed on the day, with the 5Y rising 2.1 bps to 6.96% and the 10Y up 1.1 bps to 7.16%, flattening the 5Y–10Y curve by 1.0 bp, while the 1Y, 15Y and 20Y edged lower and the INDOBeX Composite slipped 0.03% to 439.652. Sukuk yields were broadly steady, with the 2Y and 4Y up 0.9 bps each and the 13Y and 25Y little changed. On the macro front, weak US September payrolls (29K versus the 90K consensus), downward revisions of 60K to prior months and a rise in unemployment to 4.2% point to a cooling labor market, which strengthens the case for a more accommodative Fed. Domestically, attention turns to the 6 October SBSN auction of eight series with an IDR10tn indicative target that could be raised to IDR20tn, which should offer a useful gauge of investor demand across tenors. In corporate news, PEFINDO affirmed WIKA’s idBBB rating with a Negative Outlook on weak financials and high refinancing risk, while Hutama Karya is expected to repay its IDR281.0bn debt maturing in January 2027 using internal funds, backed by IDR1.4tn in cash and an IDR4tn standby credit facility.