Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesia’s fixed income market strengthened, with benchmark government bond yields declining across tenors. The 5Y yield fell 6.2 bps to 7.08%, while the 10Y yield declined 2.9 bps to 7.16%, resulting in a 3.3 bps steepening in the 5Y–10Y curve. Sukuk yields also moved lower, led by the 2Y segment, while the INDOBeX Composite rose 0.11%. In the U.S., July PPI came in below expectations, with producer prices unchanged MoM and annual PPI easing to 4.7%, reinforcing signs of moderating inflation and supporting expectations for potential Fed easing. Meanwhile, initial jobless claims rose to 209,000 but remained consistent with a resilient labor market. Domestically, investors are closely watching President Prabowo’s fiscal stance and spending priorities amid softer public approval, particularly regarding the free-meals program, cooperative development, and fiscal discipline. On the credit side, PEFINDO affirmed PT Darma Henwa Tbk’s idA rating with a Stable outlook, supported by shareholder backing and its strategic importance, although risks remain from commodity price volatility, tight industry competition, weaker profitability, and potential debt increases