Indonesian government bonds (INDOGBs) rebounded on Thursday (26-Mar), with yields declining across the curve, supported by continued foreign inflows. Foreign investors posted net buys of +Rp2.51tn (vs. +Rp0.8tn prior), mainly in non-benchmark series. Bloomberg s data showed that the 5-yr FR109 bond yield fell to 6.55% (-8.00 bps), the 10-yr FR108 yield fell to 6.83% (-7.40 bps), the 15-yr FR106 yield declined to 6.97% (-3.80 bps), and the 20-yr FR107 yield declined to 6.88% (-4.00 bps). However, offshore risk indicators softened slightly, with the 5-yr USD sovereign yield rising to 4.91% (+0.9 bps) and the 5-yr CDS widening to 97.7 bps (+0.6 bps). Meanwhile, the rupiah remained stable, edging up marginally by +0.01% to Rp16,901/USD (YTD: -1.28%).
According to IDX s OTC trading report, Indonesian government bond trading activity strengthened, increasing to Rp30.7tn (vs. Rp21.1tn prior, or YTD avg.: Rp33.7tn). The 5-yr FR0109 benchmark series led market activity, recording Rp4.7tn in trading volume. This was followed by the 9.3-yr FR0103 series (maturing on 15-Jul-35), which recorded Rp2.6tn in trading volume. Its price inched up to 99.00 (+0.56%), while the yield declined to 6.90% (-8.18 bps). Close behind, the 4.3-yr FR0104 series (maturing on 15-Jul-30), which recorded Rp2.2tn in trading volume. Its price increased to 99.83 (+0.43%), while the yield fell to 6.54% (-11.66 bps).
Domestic investors remain the key anchor. As of 16-Mar, foreign ownership stood at Rp858tn (12.7%) of the total outstanding. Year-to-date, demand has been dominated by insurance companies and pension funds (+Rp58.6tn), followed by banks (+Rp54.3tn), others (+Rp50.5tn), Bank Indonesia (+Rp41.4tn), and mutual funds (+Rp25.2tn). In contrast, foreign investors (-Rp20.7tn) and retail investors (-Rp6.6tn) have remained net sellers.
In contrast, the JCI declined by -1.89% to 7,164 (vs. +2.75% prior, YTD: -17.15%), in line with regional weakness. Turnover increased to Rp32.3tn (vs. Rp25.9tn prior, or YTD avg.: Rp28.2tn), while foreign investors recorded a significant net sell of -Rp20.7tn, pushing the YTD outflows deeper to -Rp29.1tn. Regionally, Asian equities also closed lower, with South Korea s KOSPI falling sharply (-3.22%), while Japan s Nikkei declined modestly (-0.27%), showing relative resilience.
Domestic Corporate Bonds
On the corporate side, trading activity eased on Thursday (26-Mar), with total volume declining to Rp10.2tn (vs. Rp11.5tn prior, YTD avg.: Rp5.5tn).
The SMFP06CN3 series (maturing on 21-Sep-27), rated idAAA, was the most actively traded with a total volume of Rp390bn. Its price edged lower to 100.90 (-1.36%), while the yield rose to 6.31% (+97.09 bps). This was followed by the SIMORA02ACN2 series (maturing on 16-Jan-27), rated idA+(sy) with a volume of Rp371bn. Its price increased to 102.03 (+1.48%), while the yield declined to 7.38% (-133.60 bps). Close behind was the MBMA01BCN3 series (maturing on 9-Dec-30), rated idA with a volume of Rp350bn. Its price declined to 94.17 (-6.76%), while the yield rose to 981% (+181.93 bps).
