Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds were little changed, with the 5Y yield (FR104) edging up 0.1bp to 7.11% and the 10Y yield (FR0108) rising 0.7bp to 7.15%, resulting in a slight steepening of the 5Y–10Y curve by 0.6bp, while the INDOBeX Composite gained 0.02%. Market sentiment remained cautious after US business confidence eased to 53.3 in June from 54.0 in May, although the reading stayed comfortably above the 50-point expansion threshold. Domestically, economic data pointed to a softer outlook as Indonesia’s manufacturing PMI fell sharply into contraction territory at 46.9 in June from 50.0 in May, reflecting weaker domestic and external demand, while the country unexpectedly posted its first trade deficit since April 2020 as imports outpaced exports. At the same time, inflationary pressures continued to build, with headline inflation accelerating to 3.34% YoY and core inflation rising to 2.76% YoY, the highest level in 38 months, reinforcing expectations that Bank Indonesia will remain focused on maintaining price stability. On the credit front, PEFINDO assigned PT Industri Kereta Api (Persero) (INKA) an idA- rating with a Negative Outlook, while PT Sarana Multigriya Finansial (Persero) (SMF) confirmed it will repay its upcoming bond maturity using internal funds, supported by cash and cash equivalents of IDR10.54 trillion as of end-March 2026.