Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bond yields fell across the benchmark curve, with the 5Y (FR0104) down 12 bps to 6.77% and the 10Y (FR0108) down 18 bps to 6.88%, flattening the 5Y–10Y curve by 6 bps to 11 bps, while the INDOBeX Composite gained 0.01% to close at 0.439. Sukuk benchmarks followed, with PBS030 easing 14 bps to 6.62% and PBS034 down 9 bps to 7.09%. On the macro front, Bank Indonesia held its policy rate at 5.75% in the first decision under interim chief Destry Damayanti while easing liquidity settings through a lower SRBI outstanding and IDR 446.5tn of KLM incentives that lifted loan growth to 13.58%. Externally, the Federal Reserve stayed on hold at 3.50%–3.75% with three dissents favouring a hike, keeping the UST 10Y elevated at 4.70% as Brent extended its rally to $93.87 on unresolved Strait of Hormuz risk — a combination that leaves the rupiah and the import bill exposed even as domestic bonds rally. In credit, PEFINDO assigned an idA- rating with a stable outlook to PT Mitra Tekno Madani, citing strong PNM group support against a concentrated business profile and integration risk from its shift to an operating holding structure.