Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a bull steepening in the 5Y–10Y segment, with the 5Y yield (FR104) declining -1.3 bps to 6.24% and the 10Y yield (FR0108) easing -0.6 bps to 6.57%, widening the spread by +0.7 bps, while INDOBeX rose 0.14%. Sentiment improved modestly as the US and Iran explored a potential two-week ceasefire extension, with mediation efforts helping to ease near-term geopolitical concerns, although key issues such as the Strait of Hormuz and sanctions relief remain unresolved. Domestically, the rupiah strengthened slightly to around 17,127/USD, supported by continued bond inflows of USD279.7mn, even as equity flows stayed negative. In the US, initial jobless claims fell to 207k, pointing to limited layoffs, while a rise in continuing claims to 1.82mn suggests some moderation in re-employment. Meanwhile, liquidity conditions remained supportive, reflected in solid demand across SRBI (IDR41.7tn bids; 2.45x bid-cover) and SVBI (USD254.5mn bids; 1.12x bid-cover) auctions, indicating sustained investor appetite across both duration and short-term instruments.