Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds traded mixed, with the 5Y yield (FR104) edging up 0.8bps to 7.18% and the 10Y yield (FR0108) rising marginally by 0.1bp to 7.21%, resulting in a slight flattening of the 5Y–10Y curve by 0.7bps, while the INDOBeX Composite slipped 0.03%. Market sentiment was supported by signs that diplomatic channels between the US and Iran remain open despite renewed military clashes and growing domestic pressure within Iran to abandon negotiations. Although the June ceasefire has largely unraveled amid fresh hostilities, US sanctions, and tensions surrounding the Strait of Hormuz, Iran indicated it remains willing to continue talks provided any future agreement delivers tangible economic benefits. Domestically, the rupiah strengthened for a third consecutive session to around IDR18,030/USD, supported by a weaker US dollar following softer US inflation data and improved investor confidence after S&P reaffirmed Indonesia’s BBB sovereign rating with a Stable Outlook. Foreign direct investment also reached a record IDR257.7 trillion in 2Q26, up 27.4% YoY, driven by strong inflows into the base metals, services, and mining sectors. Meanwhile, the US labor market continued to demonstrate resilience, with initial jobless claims falling to a two-month low of 208,000, while Bank Indonesia allotted USD290 million in its latest SVBI auction, with demand heavily concentrated in the 1-month tenor. On the credit front, PT Adira Dinamika Multi Finance Tbk (ADMF) announced that its IDR900 billion bond and IDR400 billion sukuk are scheduled to mature on 31 October 2026, with the company planning to repay both obligations at maturity.