Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a bull flattening in the 5Y–10Y segment, with the 5Y yield (FR104) declining -2.8 bps to 6.30% and the 10Y yield (FR0108) falling more sharply by -9.2 bps to 6.53%, narrowing the spread by -6.3 bps, while INDOBeX edged up 0.20%, reflecting firmer demand for duration. This came against a cautious geopolitical backdrop, as ongoing marathon talks between the US and Iran over the Strait of Hormuz continued to weigh on geopolitical stability, while a wider-than-expected US fiscal deficit (USD164.1bn) highlighted persistent spending pressures. At the same time, domestic indicators pointed to moderating momentum, with car sales declining 13.8% YoY and consumer confidence easing to 122.9, despite this overall sentiment remains in optimistic territory. On the credit side, WISL is set to repay its IDR1.2tn maturing bonds in Jul-2026 using internal funds, supported by solid cash reserves and receivables, while SGRO’s idA (stable) rating was affirmed, underpinned by a strong financial profile and quality plantation assets.