Bond Market Review (Thursday,10/16)

The strengthening trend in Government Debt Securities (SUN) prices continued in yesterday’s trading session. Based on data from PHEI, the yield on the 5-year SUN Benchmark (FR0104) fell by 1 basis point (bp) to 5.28%, while the yield on the 10-year SUN Benchmark (FR0103) declined by 9 bps to 5.91%. Bloomberg data showed that the 10-year SUN yield curve (GIDN10YR) dropped by 6 bps to 5.96%. The 10-year yield curve level has now moved below the lower bound of our weekly estimated range of 6.05%–6.29%.

The outright traded transaction volume of Government Securities (SBN) was recorded at Rp34.5 trillion yesterday, lower than the previous day’s volume of Rp43.8 trillion. FR0104 and FR0103 were the two most actively traded series in the secondary market, with transaction volumes of Rp5.4 trillion and Rp2.5 trillion, respectively. Meanwhile, the outright trading volume of corporate bonds stood at Rp1.5 trillion.

Bloomberg data indicated that the Rupiah exchange rate against the US Dollar was relatively unchanged, moving slightly from Rp16,576/US$ on Wednesday to Rp16,581/US$ yesterday.

Bond Market Preview (Friday,10/17)

As of this morning, global indicators show positive sentiment, reflected in the decline of US Treasury (UST) yields. The UST yield curve for 5-year and 10-year tenors fell by 8 bps and 6 bps to 3.55% and 3.99%, respectively. Meanwhile, Indonesia’s 5-year Credit Default Swap (CDS) remained at 81 bps.

Considering the above factors, we anticipate demand for Rupiah-denominated Government Securities (SBN) will remain stable. Based on yield curve valuation, the following bonds may be attractive to investors: FR0075, FR0079, and FR0083.

Kindly find the link to our Fixed Income Daily Market View for October 17, 2025 provided below this message. Thank you and best regards!

IND

https://research.bnisekuritas.co.id/doc-view?z=85daf361-f8df-4bce-8a56-1cb17a994ea6

ENG

https://research.bnisekuritas.co.id/doc-view?z=806ec5b9-0c6d-4c79-b7c5-2660b0344b12