Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds were mixed, with the 5Y yield (FR104) edging up +0.7 bps to 6.48% and the 10Y yield (FR0108) rising more sharply by +3.8 bps to 6.58%, resulting in a bear steepening of the 5Y–10Y curve by +3.1 bps, while INDOBeX was broadly unchanged at +0.001%. Market sentiment remained cautious as US–Iran negotiations showed little progress, with President Trump rejecting Tehran’s latest proposal and tensions around the Strait of Hormuz continuing to weigh on the outlook. Domestically, Finance Minister Purbaya Yudhi Sadewa stated that the government has no immediate plans to activate the proposed Bond Stabilization Fund, noting that authorities still view current market conditions as manageable through existing liquidity and cash management tools. Consumer confidence remained relatively stable at 123.0 in April, supported by improving perceptions of current economic conditions, although expectations around future income and employment softened slightly. In the US, short-term Treasury yields were broadly stable, reinforcing expectations of a softer rate environment despite the Fed’s cautious policy stance. On the credit side, PIDL fully repaid its outstanding bonds and sukuk on May 11, while PTHK’s idAA- (stable) rating was affirmed, supported by its strategic role in national infrastructure development despite ongoing pressure from its financial profile and challenging sector conditions.