One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds weakened, with the 5Y yield (FR104) rising 13.3bps to 7.20% and the 10Y yield (FR0108) increasing 3.0bps to 7.44%, flattening the 5Y–10Y curve by 10.3bps, while the INDOBeX Composite fell 0.15% to 435.411. Global sentiment remained cautious as US business activity eased to 57.6 in October from 58.4 in September, although growth remained expansionary. Geopolitical and regional developments also remained in focus, with tensions over Iran ahead of Israel’s election and Singapore expanding its energy supply options following Indonesia’s gas export cuts. Domestically, Bank Indonesia continued monitoring and intervening in the FX market amid rupiah weakness. The government is scheduled to auction nine SBN series on October 27, with an indicative target of IDR30.0tn and a maximum award of IDR45.0tn.