Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesia’s bond market is under pressure. Yields rose across all tenors — the 10-year led the move, jumping 22.9 bps to 7.42%, outpacing the 5-year which climbed 13.5 bps to 7.41%. This steepened the 5Y–10Y curve by 9.4 bps. With yields up, bond prices fell and the INDOBeX Composite dropped 0.83% to 422.853. On the global front, some good news — the US and Iran are getting closer to an interim peace deal, which is taking the edge off fears around oil supply disruptions. Back home, corporate bond market volatility hit a 4-year high, pushing up borrowing costs and potentially slowing down new issuances. That said, Danantara’s debut global bond offering was a bright spot, pulling in US$1.5 billion from 5- and 10-year USD bonds — well above the initial US$1 billion target, with appetite from 122 global investors. As for corporate refinancing risk, it looks manageable. INKP is set to repay ~IDR 2.3 trillion in maturing bonds on July 11, 2026, and ADMF will settle IDR 2.0 trillion in sukuk on June 22, 2026 — both using internal funds backed by solid cash positions.