One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds weakened, with the 5Y yield (FR104) rising 2.2bps to 7.31% and the 10Y yield (FR0108) increasing 1.4bps to 7.58%, flattening the 5Y–10Y curve by 0.7bps, while the INDOBeX Composite fell 0.20% to 432.331. Global sentiment remained cautious after the Federal Reserve held its policy rate at 3.75%–4.00%, with two policymakers favoring another hike amid persistent inflation risks and geopolitical uncertainty. Domestically, protests over forest fires and government spending added to political pressure on President Prabowo. Bank Indonesia awarded USD456mn in its October 27 SVBI auction from USD466mn in bids, with the 1-month tenor accounting for most awards at a 3.769% weighted-average yield. On the corporate front, PEFINDO assigned Bank Permata (BNLI) an idAAA rating with a Stable outlook, supported by strong parental support from Bangkok Bank, its market position, and capitalization.