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) edging up +0.2 bps to 6.25% while the 10Y yield (FR0108) declined -1.9 bps to 6.57%, narrowing the spread by -2.1 bps, as INDOBeX rose 0.08%. The macro backdrop showed tentative signs of stabilization, as easing geopolitical tensions gained traction after signals that the Iran conflict may be nearing resolution, although uncertainty persists around its broader implications, including developments in the Strait of Hormuz and rising US–UK tensions. At the same time, Indonesia faces external vulnerabilities, with S&P flagging exposure to prolonged Middle East disruptions through higher subsidy burdens, wider current account pressures, and rising borrowing costs, while external debt ticked up to USD437.9bn in February, reflecting a modest increase in financing exposure. On the credit side, ANTM’s idAA (stable) rating was affirmed, supported by strong backing from MIND ID and a solid standalone profile, though still exposed to expansion and commodity price risks, while TPIA has fully repaid its IDR588bn bonds, leading to the withdrawal of its idAA- rating.