One Pager Series — SIMINVEST Bond Pharos
Indonesian government bonds rallied, with the 5Y yield (FR104) falling 8.1bps to 6.96% and the 10Y yield (FR0108) declining 6.1bps to 7.12%, steepening the 5Y–10Y curve by 2.0bps, while the INDOBeX Composite rose 0.11% to 439.047. The US dollar strengthened as resilient economic data, elevated inflation risks, and higher Treasury yields reinforced expectations for further Fed tightening, while US job openings fell to a five-month low of 7.079mn in August, signaling softer labor demand. Domestically, Bank Indonesia maintained its rupiah stabilization efforts through a combination of spot, DNDF and NDF interventions, while continuing to adjust SRBI issuance and reduce outstanding balances. Meanwhile, BI awarded USD211.5mn in its SVBI auction, with USD191.5mn allocated to the 1-month tenor at a 3.737% weighted-average yield and USD20.0mn to the 3-month tenor at 4.015%.