Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesia’s fixed-income market posted a strong rebound, supported by a sharp decline in the 10-year government bond yield to 6.84%, which outpaced movements at the shorter end and resulted in a 19.5 bps flattening of the 5Y–10Y curve. The rally lifted bond prices, pushing the INDOBeX Composite Index up 0.53%. Externally, market sentiment was supported by resilient US economic data, with retail sales exceeding expectations, while the Federal Reserve maintained its policy rate despite revising inflation projections higher. Domestically, demand for SRBI remained robust, as reflected in the lower 12-month yield and stronger bid-to-cover ratio at the latest auction. In the corporate credit space, PEFINDO assigned an idA- (Stable) rating to PHC, highlighting its solid business and financial profile, while ADCP was downgraded to idCCC with Negative CreditWatch amid ongoing liquidity and funding challenges.