The upward trend in Government Debt Securities (SUN) prices continued in yesterday’s trading session. According to data from PHEI, the yield on the 5-year SUN benchmark (FR0104) declined by 5 basis points (bps) to 6.02%, and the yield on the 10-year benchmark (FR0103) fell by 4 bps to 6.47%. Bloomberg data showed that the 10-year SUN yield curve (GIDN10YR) dropped 3 bps to 6.49%. The 10-year yield curve is now approaching the lower bound of our weekly estimated range of 6.47%–6.60%.
The outright transaction volume for Government Securities (SBN) reached Rp38.9 trillion yesterday, up from Rp24.4 trillion the previous day. FR0103 and PBS003 were the two most actively traded series in the secondary market, with transaction volumes of Rp5.2 trillion and Rp4.3 trillion, respectively. Meanwhile, the volume of corporate bonds was recorded at Rp2.6 trillion.
According to DJPPR data, the total incoming bids in yesterday’s Government Sharia Securities (SBSN) auction reached Rp50.2 trillion, surpassing the Rp40.8 trillion recorded in the previous SBSN auction on July 8. The Government set the awarded amount at Rp12 trillion, exceeding the indicative target of Rp9 trillion.
Bloomberg data indicated that the Rupiah appreciated slightly by 0.02% against the US Dollar, moving from Rp16,323/US$ on Monday to Rp16,320/US$ yesterday.
Bond Market Preview (Wednesday,07/23)
Global indicators reflected continued positive sentiment, as seen in the decline of US Treasury (UST) yields and Indonesia’s Credit Default Swap (CDS) level. The UST 5-year and 10-year yield curves fell by 3 bps from the previous day to 3.88% and 4.35%, respectively. Meanwhile, Indonesia’s 5-year CDS declined slightly by 1 bp to 72 bps. Over the past seven days, Indonesia’s 5-year CDS has remained stable within the 72–75 bps range, indicating that investor confidence in Indonesia’s creditworthiness remains well-anchored.
Considering the above market conditions, we see the potential for stable demand in Rupiah-denominated Government Securities. Based on yield curve valuation, we estimate the following bonds will be attractive to investors: FR0054, FR0058, FR0096, FR0080, and FR0083.
Kindly find the link to our Fixed Income Daily Market View for July 23, 2025 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=1cb17d64-1014-4f48-8b3c-d1078e7eee03
ENG
https://research.bnisekuritas.co.id/doc-view?z=3a40acb5-4dd3-4ada-b1de-6670a00a7b0e
