One Pager Series — SIMINVEST Bond Pharos
On November 3, 2026, Indonesian government bond yields declined across most benchmark tenors, with the 10-year yield falling 12.0 bps to 7.67% and the 5-year yield easing 8.5 bps to 7.36%. This movement resulted in a 3.5 bps flattening of the 5Y-10Y yield spread. Meanwhile, sukuk yields showed mixed performance, with PBS038 rising 15.0 bps to 7.71%, while the INDOBeX Composite remained unchanged at 429.755. In global markets, the US ISM Manufacturing PMI climbed to 55.5 in October, surpassing market expectations on the back of stronger AI and data centre-related demand. Meanwhile, reports of the US and Iran reviewing mediator proposals amid limited airstrikes contributed to an approximately 10% decline in oil prices, while the US midterm elections commenced, with Democrats expected to secure control of the House. Domestically, the SBSN auction recorded IDR16.7 trillion in awarded bids, with a bid-to-cover ratio of 1.72x. Separately, PEFINDO assigned PT Pratama Mitra Sejati, a Pertamina-affiliated entity, an idA rating with a stable outlook, supported by group backing and stable profit margins, although rising leverage and macroeconomic sensitivity remain key credit considerations.