One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds traded mixed, with the 5Y yield (FR104) falling 7.7bps to 6.88% while the 10Y yield (FR0108) rose 2.9bps to 7.21%, steepening the 5Y–10Y curve by 10.5bps, while the INDOBeX Composite gained 0.05% to 439.832. Global sentiment remained cautious ahead of US September CPI data, as investors increased bearish Treasury positions amid expectations of potential Fed rate hikes, while US existing home sales rebounded 1.5% MoM to 3.99mn units in September despite ongoing affordability pressures. Domestically, the government awarded IDR35.0tn in its October 13 SUN auction from IDR64.86tn in bids, with the bid-to-target ratio reaching 2.16x. On the corporate front, PEFINDO assigned PT Maxima Daya Indonesia (MDI) a dA- rating with a Stable outlook, supported by its PLN Group synergy and strong financial profile, although business diversification and raw material price volatility remain constraints.