Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds traded mixed, with the 5Y yield (FR104) declining 3.9bps to 7.10% while the 10Y yield (FR0108) edged up 0.6bps to 7.12%, resulting in a steepening of the 5Y–10Y curve by 4.4bps, as the INDOBeX Composite gained 0.10%. Global attention centered on Federal Reserve Chair Kevin Warsh’s sweeping reform agenda, which includes reviews of the Fed’s communication strategy, balance sheet management, labor market analysis, and inflation framework, alongside a simplified policy statement and renewed emphasis on price stability, while US Treasury bill yields remained broadly stable. Domestically, the government reaffirmed its commitment to maintaining macroeconomic stability by keeping the fiscal deficit below the 3% of GDP ceiling and extending IDR281 trillion of fund placements in state-owned banks through end-2026 to support liquidity and credit growth, with an additional IDR100 trillion available if needed. Meanwhile, the government is set to auction IDR10 trillion of SBSN on 30 June as part of its 2026 State Budget financing program. On the credit side, PEFINDO affirmed Bank Victoria International’s idA- rating with a Stable Outlook and assigned the same rating to its proposed IDR2.5 trillion bond issuance, while PT Hasnur Jaya International received a new idA rating with a Stable Outlook, supported by its integrated coal mining operations and solid financial profile.