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 -2.1 bps to 6.25% while the 10Y yield (FR0108) edged up +1.2 bps to 6.59%, widening the spread by +3.2 bps, as INDOBeX inched higher by 0.07%. The macro backdrop remained mixed, with easing oil prices (Brent ~$96–98/bbl) on expectations of a potential US–Iran ceasefire extension, although ongoing naval tensions and threats to Gulf ports continue to pose risks to global stability. In the US, producer prices came in softer than expected (headline PPI 4.0% YoY; core 3.8%), suggesting some easing in pipeline inflation pressures. Domestically, the rupiah weakened further to around 17,134/USD, pressured by dividend repatriation flows and import demand, alongside lingering concerns over energy subsidies. Meanwhile, demand in the latest SBN auction remained solid, with IDR78.4tn in bids and IDR42.0tn awarded (1.87x bid-cover), reflecting continued appetite for liquid benchmark tenors and ongoing liquidity absorption. On the credit side, BUMI will repay its IDR48.8bn Jul-2026 bonds using internal funds, supported by its cash reserves.