One Pager Series — SIMINVEST Bond Pharos
Indonesian government bond yields declined across benchmark tenors, led by the 5-year (FR0104), which fell 11.1 bps to 7.28%, while the 10-year (FR0108) decreased 4.9 bps to 7.61%, steepening the 5Y–10Y curve by 6.2 bps. Sukuk yields also eased, while the INDOBeX Composite rose 0.19% to 430.38. Globally, Ed Yardeni viewed a 5% US 10-year Treasury yield as attractive, citing productivity-driven disinflation and long-term inflation expectations of 2–2.5%, with yields likely to trade within a 4–5% range. Meanwhile, the US 10-year yield declined to 4.84%, its lowest since September 10, following the Democrats’ midterm victory. European gas futures extended their decline for a fourth consecutive session, falling around 18% this week amid hopes of progress toward resolving the Iran conflict, despite EU gas storage declining to 74%. Domestically, Indonesia’s GDP grew 5.47% YoY in Q3 2026, accelerating from 5.29% in Q2 and exceeding the 5.2% market consensus, supported by stronger government spending and a manufacturing recovery, bringing 9M26 growth to 5.45%. In corporate developments, PEFINDO assigned RAJA an idA+ rating with a stable outlook for its proposed SR Bond I 2026 and SR Sukuk Wakalah I 2026, while OKI Pulp and Paper Mills plans to repay its bonds and sukuk maturing on December 12, 2026 using internal cash and proceeds from new bond issuance.