In July 2025, the 10-year U.S. Treasury yield rose from 4.24% to 4.37% as markets digested mixed economic
data and shifting policy expectations. Yields climbed to 4.48% mid-month after June CPI accelerated to
2.67% YoY—above forecasts—reinforcing concerns about sticky inflation. However, yields eased slightly in
the second half of the month as investors reassessed the outlook, weighing persistent price pressures against
indications of slowing economic momentum and awaiting fresh labor market data. The FED held rates steady
at 4.25%–4.50% at its July 29-30 meeting, citing persistent inflation and uncertainty, while reiterating a
data-dependent approach and ongoing balance sheet runoff. Indonesia recorded 0.30% MoM and 2.37%
YoY inflation in June, mainly driven by food and tobacco, with core inflation easing to 2.32%. At its July 15–
16 meeting, Bank Indonesia cut the BI-Rate by 25 bps to 5.25%, supported by disinflation and rupiah stability,
and signaled openness to further adjustments to support growth. Indonesia’s 10-year government bond yield
edged lower from 6.59% to 6.55%, reflecting steady foreign inflows and subdued inflation. Sukuk issuance
climbed to IDR 9.7 trillion in July, lifting the year-to-date total to IDR 32.1 trillion, well above maturities of
IDR 10.6 trillion. Corporate bond issuance surged 74.5% YoY to IDR 32.9 trillion in July, bringing cumulative
2025 issuance to IDR 98.6 trillion, exceeding maturities of IDR 70.6 trillion and signaling robust market
confidence.