Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bond yields fell across the benchmark curve, with the 5Y (FR0104) down 4 bps to 6.89% and the 10Y (FR0108) down 3 bps to 7.06%, while the 15Y and 20Y each eased 1 bp; the 5Y–10Y curve steepened by roughly 1 bp and the INDOBeX Composite closed higher. Sukuk benchmarks followed, with PBS003 down 3 bps and PBS030 down 2 bps. On the macro front, Bank Indonesia held its policy rate at 5.75% for a second meeting in the first decision under interim chief Destry Damayanti, pairing a firm rate stance with looser liquidity settings as SRBI outstanding was cut and KLM incentives drove loan growth to 13.58%. Externally, Brent near $92 on UAE–Iran tensions and contested control of the Strait of Hormuz remains the key risk to the rupiah and the import bill, while a 3.6% rebound in US mortgage applications on a 4 bp slip in the 30Y rate points to demand that is rate-sensitive rather than genuinely recovering. In credit, PEFINDO cut WIKA’s SR Bond II Phase II to idD and SR Sukuk Mudharabah II Phase II to idD(sy) after the issuer deferred coupon payments due August 18, extending the strain visible across state construction SOEs.