Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian government bonds and sukuk weakened across the curve, with yields rising by 2.9–11.0 bps across benchmarks as the 10-year yield climbed to 7.20%, driving a 5Y–10Y curve steepening of 8.1 bps, while the INDOBeX Composite fell 0.27% to 429.456; macro sentiment remained mixed as US inflation continued to outpace wage growth, weighing on purchasing power and potentially increasing reliance on savings and debt, while domestically Bank Indonesia’s SRBI auction saw solid demand with IDR 30.0 trillion awarded from IDR 46.6 trillion in bids, generating a net increase of IDR 26.2 trillion in outstanding, and liquidity conditions stayed supportive as M2 money supply accelerated 10.8% YoY in May driven by stronger M1, loan growth, and higher net foreign assets.