Government Debt Securities (SUN) closed weaker in yesterday’s trading session. According to data from PHEI, the yield on the 5-year SUN benchmark (FR0104) rose by 3 basis points (bps) to 6.16%, while the yield on the 10-year benchmark (FR0103) increased by 1 bp to 6.57%. Bloomberg data showed that the 10-year SUN yield curve (GIDN10YR) also climbed 2 bps to 6.59%. 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 6.67%.
The outright transaction volume of Government Securities (SBN) was recorded at Rp18.5 trillion yesterday, lower than the previous day’s volume of Rp36.4 trillion. FR0104 and FR0103 were the two most actively traded series in the secondary market, with transaction volumes of Rp4.3 trillion and Rp1.7 trillion, respectively. Meanwhile, the outright transaction volume of corporate bonds reached Rp3.9 trillion.
According to Bloomberg data, the Rupiah exchange rate against the US Dollar weakened by 0.33%, moving from Rp16,287/US$ on Wednesday to Rp16,341/US$ yesterday.
Global indicators reflected a mixed sentiment. The 5-year US Treasury (UST) yield curve rose by 2 bps from the previous day to 4.01%, and the 10-year UST yield curve increased by 1 bp to 4.47%. On the other hand, Indonesia’s 5-year Credit Default Swap (CDS) dropped slightly by 1 bp to 74 bps. Over the past seven days, Indonesia’s 5-year CDS has remained stable within the range of 74–75 bps. This relatively stable CDS level suggests investor confidence in Indonesia’s creditworthiness remains well-anchored.
Considering the above market conditions, we see potential for stable demand in Rupiah-denominated Government Securities. Based on yield curve valuation, the following bonds may be attractive to investors: FR0042, FR0099, FR0052, FR0106.
Kindly find the link to our Fixed Income Daily Market View for July 18, 2025 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=2f47c914-a905-42cc-8af5-3ebfc907143b
ENG
https://research.bnisekuritas.co.id/doc-view?z=6d8dca24-01fc-4fc7-940e-b6f41c4b8945
