Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a bear steepening in the 5Y–10Y segment, with the 5Y yield (FR104) declining -3.3 bps to 6.27% while the 10Y yield (FR0108) rose +4.7 bps to 6.58%, widening the spread by +8.0 bps, as INDOBeX was broadly flat at -0.01%. This move came amid a more cautious macro backdrop, as escalating tensions in the Strait of Hormuz following failed US–Iran marathon talks heightened the risk of supply disruptions, pushing oil prices above USD100/bbl and raising concerns over global growth and inflation. Domestically, Bank Indonesia continues to see steady growth of around 5.0%–5.2% in 1Q, supported by resilient demand and ongoing rupiah stabilization measures, while retail sales remained firm at +6.5% YoY in February on festive spending, though momentum is expected to normalize going forward. Market focus is also shifting toward the upcoming SUN auction on 14 April with an indicative target of Rp36tn. On the credit side, MBMA’s idA (stable) rating was affirmed, supported by integrated operations and strong group synergies but still exposed to execution and nickel price risks, while IHCP was assigned idAA (negative), reflecting its strategic role and solid business position, albeit with some pressure from leverage and uncertainty around parental support.