Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds showed a steeper curve despite mixed yield movements, with the 5Y FR0104 rising 1.3bps to 7.17% and the 10Y FR0108 climbing 2.4bps to 7.26%, resulting in a 1.1bps widening of the 5Y–10Y spread, while the INDOBeX Composite Bond Index gained 0.05% to 431.462. Market attention remained focused on Bank Indonesia’s leadership transition, with President Prabowo reportedly nearing a decision and Destry Damayanti emerging as the leading candidate for BI governor, a development viewed as supportive for policy continuity and investor confidence. Domestic macro indicators remained resilient, supported by a 0.69% YoY increase in residential property prices in Q2 2026 and foreign exchange reserves that stayed solid at USD145.3 billion, equivalent to 5.5 months of imports. Externally, U.S. labor market data softened as July nonfarm payrolls rose by only 73k and prior months were revised down by a combined 103k, reinforcing expectations of a weaker employment backdrop. Meanwhile, Bank Indonesia’s latest SRBI auction attracted strong demand concentrated in the 12-month tenor, where IDR39.8 trillion in bids translated into IDR4.0 trillion awarded, with the weighted average yield set at 7.59375%, highlighting continued investor preference for longer-duration rupiah liquidity instruments.