Bond Market Review (Monday,07/07)
The prices of Government Debt Securities (SUN) moved mixed during Monday’s trading session. According to data from PHEI, the yield on the 5-year SUN benchmark (FR0104) rose by 1 basis point (bp) to 6.22%, while the yield on the 10-year SUN benchmark (FR0103) remained unchanged at 6.57%. Bloomberg data also showed that the 10-year SUN yield curve (GIDN10YR) stayed flat at 6.58%. The current level of the 10-year SUN yield curve remains in line with our estimated range for this week, which is between 6.54% and 6.74%.
The outright transaction volume of Government Securities (SBN) was recorded at Rp18.6 trillion yesterday, lower than the previous Friday’s volume of Rp19.7 trillion. PBS003 and FR0103 were the two most actively traded series in the secondary market, with transaction volumes of Rp3.5 trillion and Rp3.0 trillion, respectively. Meanwhile, the outright trading volume of corporate bonds stood at Rp6.5 trillion.
Bloomberg data showed that the Rupiah exchange rate against the US Dollar weakened by 0.34%, moving from Rp16,185/US$ on Friday to Rp16,240/US$ yesterday.
Bond Market Preview (Tuesday,07/08)
Global indicators suggested a slightly negative sentiment, reflected in the rising yields of US Treasuries (UST). The 5-year UST yield curve rose by 2bps to 3.96%, and the 10-year UST yield curve increased by 5bps to 4.40%. Meanwhile, Indonesia’s 5-year Credit Default Swap (CDS) remained stable at 75bps. Over the past seven days, the 5-year CDS has fluctuated within a range of 75bps to 79bps. Market participants remain attentive to further developments in US tariff policy, which may influence global risk appetite.
Considering the above market conditions, we see potential for stable demand for Rupiah-denominated Government Securities. Based on yield curve valuation, we expect the following bonds to be attractive to investors: FR0090, FR0087, FR0091, FR0100, FR0083.
Kindly find the link to our Fixed Income Daily Market View for July 8, 2025 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=2a10f893-dd1a-4650-8277-d997265edb5b
ENG
https://research.bnisekuritas.co.id/doc-view?z=0ada3001-0a7c-49d3-9e62-66e3eb989371
