Fixed Income Daily One Pager Series — Daily Bond Lantern
Indonesian bonds posted a bull steepening in the 5Y–10Y segment, with the 5Y yield (FR104) down -10.0 bps to 6.32% and the 10Y yield (FR0108) down -6.7 bps to 6.58%, widening the spread by +3.3 bps, while INDOBeX rose 0.45%. Macro sentiment remains cautious amid US–Iran geopolitical tensions, a data-dependent Fed stance, and Indonesia’s FX reserves declining to $148.2bn (-$3.7bn). On the credit side, IJEE secured idA (stable) for its IDR2.5tn bond and sukuk issuance (mainly for refinancing and capex), while MEDP’s idA (stable) rating was affirmed, supported by stable earnings and strategic importance, though constrained by leverage and execution risks.