In February 2025, the 10-year US Treasury yield dropped from about 4.8% in mid-January to roughly 4.2%, its steepest decline in months, as investors’ strengthened Fed rate cut expectations and a “growth scare” driven by weak consumer spending. US headline CPI rose to 3.0% YoY in January (up from 2.9% in December) while core CPI edged up to 3.26%, driven by reduced goods deflation and resurging energy inflation, despite a slight easing in services inflation. Meanwhile, in Indonesia, February saw 0.48% MoM and 0.09% YoY deflation—primarily due to lower housing, water, electricity, and fuel costs—with core inflation rising to 2.48% YoY. Bank Indonesia maintained the BI-Rate at 5.75% to keep inflation within the 2.5±1% target and support stability. Indonesia’s 10-year government bond yield mirrored US trends, falling from 7.05% on February 3rd to about 6.75% on February 19th, buoyed by controlled inflation and 4Q GDP growth of 5.02%. Additionally, sukuk issuance surged to IDR 2.7 trillion in February—a 5.4x increase over February 2024—bringing the 2025 total to IDR 5.0 trillion, while corporate bond issuance grew 17.5% YoY to IDR 9.9 trillion, although bond maturities reached IDR 13.7 trillion.