Bond Market Review (Wednesday,06/17)
Prices of Government Debt Securities (SUN) closed stronger in yesterday’s trading session. PHEI data showed that the yield on the 5-year SUN benchmark (FR0109) declined by 6 basis points (bps) to 6.81%, while the yield on the 10-year SUN benchmark (FR0108) fell by 15 bps to 6.84%. According to Bloomberg data, the 10-year SUN yield curve (GIDN10YR) was recorded at 6.90%, markedly below the previously observed level of 7.42%. The latest GIDN10YR reading is 32 bps below the lower bound of our weekly estimated range of 7.22%–7.51%.
Outright transaction volume in Government Securities (SBN) reached Rp22.3 trillion yesterday, lower than the Rp25.5 trillion recorded on Monday. FR0109 and PBS030 were the two most actively traded series in the secondary market, with transaction volumes of Rp3.7 trillion and Rp2.9 trillion, respectively. Meanwhile, outright transaction volume for corporate bonds totaled Rp8.1 trillion.
DJPPR data showed that total incoming bids at yesterday’s Government Sharia Securities (SBSN) auction reached approximately Rp19.1 trillion, lower than the Rp26.0 trillion recorded at the previous SBSN auction on 2 June 2026. The Government set the total amount awarded at Rp9.5 trillion, below the indicative target of Rp12 trillion.
Bank Indonesia issued Rp43.00 trillion of SRBI at yesterday’s auction. Last week, BI conducted two auctions (10 and 12 June), with total absorption of Rp51.00 trillion (Rp15 trillion and Rp36 trillion). For the 12-month tenor, the weighted average yield (WAY) of SRBI stood at 7.59% at the 17 June auction, down approximately 6 bps compared with the 12 June 2026 auction. On a year-to-date basis as of 17 June 2026, BI has issued Rp628.9 trillion of SRBI, while SRBI maturities during 6M26 are estimated at Rp325.7 trillion.
Bloomberg data showed that the Rupiah weakened by 0.21% against the US Dollar, moving from Rp17,725/US$ on Tuesday to Rp17,762/US$ yesterday.
Bond Market Preview (Thursday,06/18)
The Fed maintained its policy rate at 3.50%–3.75%. However, Chairman Warsh delivered a more hawkish FOMC message focused on restoring price stability, noting the removal of forward guidance from the policy statement and announcing a broad review of the Fed’s policy framework, communication strategy, and operating procedures.
As of this morning, Brent crude oil prices increased by 0.75% from the previous day to US$79.6 per barrel. Global indicators point to mixed sentiment, with a negative bias. Indonesia’s 5-year Credit Default Swap (CDS) narrowed by 1 bp to 86 bps. However, the 5-year and 10-year US Treasury (UST) yields rose by 11 bps and 6 bps, respectively, to 4.27% and 4.49%.
Market participants are awaiting the outcome of Bank Indonesia’s Board of Governors Meeting (RDG BI), which is scheduled to be announced this afternoon. Taking the above factors into account, we expect Rupiah-denominated SUN yields to remain sensitive to global developments and domestic liquidity conditions. Based on yield-curve valuation, the following bonds may be attractive for investors: FR0056, FR0059, FR0064, FR0095, FR0101, and FR0104.
Kindly find the link to our Fixed Income Daily Market View for June 18, 2026 provided below this message. Thank you and best regards!
IND
https://research.bnisekuritas.co.id/doc-view?z=75377d55-aa7e-42e9-abce-f06b88c11f4a
ENG
https://research.bnisekuritas.co.id/doc-view?z=37a12b2f-f2e5-4dcd-8007-4bd00f1c6b7f
