In March 2026, global markets were shaped by escalating tensions in the Middle East, particularly in the Persian Gulf, which heightened uncertainty and increased demand for safe-haven assets. As a result, the 10-year U.S. Treasury yield declined to around 4.3% from its recent peak of 4.44%, despite relatively stable inflation, with headline CPI at 2.4% YoY. The Federal Reserve maintained its policy rate at 3.5%–3.75% while signaling a potential rate cut later this year. In Indonesia, inflation eased to 3.48% YoY from 4.76%, returning within Bank Indonesia’s target range, while core inflation moderated to 2.52%. Bank Indonesia kept its benchmark rate unchanged at 4.75% to support rupiah stability, as the currency weakened to around IDR 16,985/USD amid global pressures. Meanwhile, Indonesia’s 10-year government bond yield rose to 6.88%, while sukuk issuance reached IDR 3.1 trillion in March (IDR 10.2 trillion YTD), still exceeding maturities of IDR 5.0 trillion, and corporate bond issuance stood at IDR 13.1 trillion (IDR 40.7 trillion YTD), reflecting resilient yet moderating activity in the domestic fixed income market.