Trump said that trade framework with China was already established. He also planned to send out the deal details to countries in 2wk. On price front, last month saw weak US CPI (May’25: +0.1% m-m, cons: +0.2% m-m, prev: +0.2% m-m). From domestic, details on State Revenue Agency (BPN) was revealed. During its first 100 days, the institution planned to recruit top officials, consolidate national data base, and reform Income and Value-Added Tax.

From the bond market, FR 40, 84, 86, and 105, are currently the cheapest based on our yield curve model. Last national business day, the dollar index was closed at 98.63 (-0.5%). Rupiah was appreciated by 0.1% at USDIDR at 16,260. The 10yr UST yield was up by +5.0bps to 4.42% and 10yr INDOGBR was drop by -2.6bps at 6.75% – the spread between the two was at 233bps.

Economy: Trump announced trade agreement framework with China

Trump had reached a trade framework with China, marking a significant easing of prior tariff tensions. Under this agreement, the U.S will implement the following tariff regime: (1) 10% baseline duty, (2) 20% rate for fentanyl-related goods, and (3) maintaining roughly 25% of previous tariff levels. China has committed to supplying rare earths and magnets, while the US eased some of its export control and allowed Chinese students into its colleges and universities. Trump’s administration will also pursue bilateral trade agreements with India, Japan, South Korea, and the European Union. Source: Bloomberg

Economy: In May’25, US CPI was below consensus (curr: +0.1% m-m, cons: +0.2% m-m, prev: +0.2% m-m)

The moderation was driven by energy (curr: -1.0% m-m, prev: +0.7% m-m), medical care services (curr: +0.2% m-m, prev: +0.5% m-m), and transportation services (curr: -0.2% m-m, prev: +0.1% m-m). By excl. food and energy, the core figure was recorded at +0.1% m-m (cons: +0.3% m-m, prev: +0.2% m-m). Source: US BLS