Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds saw a bear steepening in the 5Y–10Y segment, with the 5Y yield (FR104) declining -5.8 bps to 6.47% while the 10Y yield (FR0108) edged up +0.4 bps to 6.76%, widening the spread by +6.2 bps, as INDOBeX slipped slightly by 0.02%. The macro backdrop remained uncertain, as US–Iran negotiations continued to stall, with markets awaiting a response from Washington to Iran’s proposal for an interim deal involving the reopening of the Strait of Hormuz in exchange for easing the naval blockade, while key disagreements around nuclear constraints persist. Rising tensions have also drawn attention to the Strait of Malacca, a critical global trade route, where authorities reaffirm its open status but underlying vulnerabilities remain. Domestically, demand in the latest SBN auction stayed solid, with IDR75.0tn in bids and IDR40.0tn awarded (1.87x bid-cover), reflecting continued appetite for benchmark tenors. On the credit side, POST’s ‘A(idn)’ (positive) rating was affirmed, supported by strong government backing despite a weaker standalone profile, while PTPN is set to repay its IDR500bn MTN in May-2026 using internal funds, supported by its cash reserves.