Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds came under renewed selling pressure, with the 5Y yield (FR104) rising 5.6bps to 7.27% and the 10Y yield (FR0108) climbing 6.9bps to 7.31%, resulting in a steepening of the 5Y–10Y curve by 1.3bps, while the INDOBeX Composite declined 0.07%. Market sentiment remained cautious as US President Donald Trump urged Iran to reach an agreement with Oman to reopen the Strait of Hormuz within days, warning that failure to do so could trigger renewed large-scale military strikes, while Iran maintained its stance on retaining control over maritime traffic. Separately, US job openings fell by 178,000 to 7.36 million in June, below market expectations, signaling that labor demand continues to normalize despite steady hiring and broadly resilient labor market conditions. Domestically, Bank Indonesia announced new macroprudential measures to support bank lending, including a 200-basis-point reduction in reserve requirements for banks that keep holdings of government bonds and SRBI below 19% of total funds, while reiterating that SRBI should primarily function as a liquidity management instrument to support rupiah stability. Meanwhile, the Ministry of Finance raised IDR32.0 trillion in its government bond auction from total bids of IDR70.7 trillion, with demand concentrated in the newly issued FR0110, which attracted IDR34.5 trillion in bids.