In September 2026, the 10-year U.S. Treasury yield climbed to around 5.30%, while the 30-year yield reached 5.64%, both at their highest levels since 2002, amid persistent inflation concerns, rising oil prices, and expectations of further monetary tightening. U.S. headline CPI held at 3.4% YoY in August, while core CPI eased to 2.4% from 2.5%, despite renewed energy-related pressures. The Federal Reserve raised the federal funds rate by 25 bps to 3.75%–4.00% in September, marking its first-rate hike since 2023. In Indonesia, inflation accelerated to 3.28% YoY in September from 3.19% in August, while Bank Indonesia maintained the BI-Rate at 5.75% for a third consecutive meeting to support rupiah stability and keep inflation within its target range. Against this backdrop, Indonesia’s 10-year government bond yield stood at around 7.16% on October 1, down approximately 7 bps over the preceding month, although it remained 83 bps higher than a year earlier. Activity in the domestic debt capital market rebounded, with sukuk issuance rising to IDR 5.8 trillion (vs. IDR 0.3 trillion in August), bringing cumulative issuance to IDR 30.9 trillion in 9M26. Meanwhile, corporate bond issuance increased to IDR 13.3 trillion (vs. IDR 7.2 trillion in August), lifting year-to-date issuance to IDR 99.3 trillion.