One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds closed mixed, with the 5Y–10Y spread widening by 8.7 bps. The 5-year FR0104 yield declined by 6.7 bps to 7.21%, while the 10-year FR0108 rose by 2.0 bps to 7.63%. INDOBeX Composite gained 0.11% to 430.848. In the US, initial jobless claims fell to 189K, matching a 57-year low, while the Fed’s balance sheet stood at USD6.75tn. SRBI issuance declined to IDR7.50tn amid lower bids of IDR36.90tn, while the 12-month yield increased to 6.675%. Domestically, the government plans to raise mandatory DHE conversion to 100% starting January 1, with exemptions extended to Japan, South Korea, and the EU. In credit developments, PEFINDO downgraded INKA to idB with a negative outlook and revised WIFI’s outlook to negative while affirming its idA rating, citing weaker subscriber growth and elevated leverage of 4.8x.