One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds were mixed, with the 5Y yield (FR104) rising 0.9bps to 6.92% while the 10Y yield (FR0108) fell 2.3bps to 7.15%, flattening the 5Y–10Y curve by 3.2bps, while the INDOBeX Composite declined 0.03% to 438.701. Global sentiment remained cautious as planned Iran-Gulf talks on establishing a temporary shipping lane through the Strait of Hormuz were delayed amid rising regional tensions, pushing Brent crude above USD108/bbl. Against this backdrop, President Prabowo replaced Finance Minister Purbaya Yudhi Sadewa with Suahasil Nazara ahead of the 2027 budget, with fiscal credibility and deficit management remaining key priorities. Meanwhile, US core CPI accelerated 0.3% MoM in August, although annual core inflation eased to 2.4%, keeping inflation and the Fed’s policy outlook in focus. Domestically, the government will also conduct an SBN auction on September 15, targeting IDR32tn, offering three SPN and six FR series across maturities from 2026 to 2064.