One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds weakened, with the 5Y yield (FR104) rising 3.7bps to 6.94% and the 10Y yield (FR0108) increasing 3.8bps to 7.12%, steepening the 5Y–10Y curve by 0.1bps, while the INDOBeX Composite edged up 0.01% to 439.859. Global markets remained cautious as Iran rejected US conditions for reopening the Strait of Hormuz, while renewed Houthi attacks on Saudi Arabia heightened concerns over prolonged energy supply disruptions. Meanwhile, the US 2Y–10Y Treasury spread narrowed to around 17bps as markets priced further Fed tightening, with the 10Y yield near 5.21% and upcoming labor, inflation, and growth data in focus. Domestically, Bank Indonesia continued shifting rupiah intervention toward domestic and offshore NDFs, reducing reliance on spot-market intervention to preserve foreign-exchange reserves while supporting currency stability. Looking ahead, the government will conduct a SUN auction on September 29, targeting IDR30tn with a maximum award of 150%, offering nine series with maturities ranging from October 2026 to July 2064.